An opportunity cost: Multiple Choice Requires a current outlay of cash. Is an unavoidable cost because it remains the same regardless of the alternative chosen. Is the potential benefit lost by choosing a specific alternative course of action among two or more. Is irrelevant in decision making because it occurred in the past. Results from past managerial decisions.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.