The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n): a. out-of-pocket cost. b. alternative cost. c. differential cost. d. sunk cost. e. opportunity cost.

b. Alternative cost. 

Explanation:

Sunk cost is cost that has been incurred and cannot be recovered.

Out of pocket cost is a cost incurred out of an employees personal cash reserves for which he may be reimbursed for by his employers.

Differential cost is the cost of two different options.

Opportunity cost is the benefit lost when one alternative is chosen over other alternatives.

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