The term “opportunity cost” is thrown around a lot but many people don’t fully understand the concept. Opportunity Costcan be defined as the cost of something in terms of an opportunity forgone…or the most valuable foregone alternative(Wikipedia). Basically, everything you do has an opportu...
The meaning of OPPORTUNITY COST is the added cost of using resources (as for production or speculative investment) that is the difference between the actual value resulting from such use and that of an alternative (such as another use of the same resourc
The definition of opportunity cost is the potential gain lost by the choice to take a different course of action when considering multiple investments or avenues of business. When weighing two or more courses of action, the opportunity cost refers to the value of the option you necessarily sacrif...
Opportunity costs are at the center of the economic sphere and govern the cost of every financial process. Learn more about the definition and relative calculations of opportunity cost, explore the relationship between explicit and implicit costs, and apply your understanding with examples. Relate...
Opportunity Cost of Capital The difference in return between an investment one makes and another that one chose not to make. This may occur in securities trading or in other decisions. For example, if a person has $10,000 to invest and must choose between Stock A and Stock B, the opport...
What is the definition of opportunity cost?Each business transaction and strategy has benefits related to it, but businesses must choose a specific action. By choosing one alternative, companies lose out on the benefits of the other alternatives. In other words, opportunity costs are not physical ...
Opportunity cost definition: the money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative. See examples of OPPORTUNITY COST used in a sentence.
Opportunity costs are at the center of the economic sphere and govern the cost of every financial process. Learn more about the definition and relative calculations of opportunity cost, explore the relationship between explicit and implicit costs, and apply your understanding with examples. Cost of...
Opportunity cost is the loss of one alternative’s value when you choose another. It is equal to the difference in returns between the forgone and chosen options. Opportunity cost is an economic term, not an accounting term. It helps to quantify the real
Opportunity cost is a strictly internal measure used for strategic planning; it is not included in accounting profit or reflected in external financial reporting. Examples of opportunity cost considerations include investing in a new manufacturing plant in Los Angeles as opposed to Mexico City, deciding...