Definition of opportunity cost in the Definitions.net dictionary. Meaning of opportunity cost. What does opportunity cost mean? Information and translations of opportunity cost in the most comprehensive dictionary definitions resource on the web.
lost opportunity definition and meaning | AccountingCoach lost opportunity definition The benefit foregone by choosing another course of action. Also known as the opportunity cost.The lost opportunity is sometimes measured by the lost contribution margin (sales minus the related variable costs). What Is Opportunity Cost? - The Balance Jul 01, 2020 Opportunity cost definition — AccountingTools Opportunity cost is the profit lost when one alternative is selected over another. The concept is useful simply as a reminder to examine all reasonable alternatives before making a decision. For example, you have $1,000,000 and choose to invest it in a product line that will generate a return of 5%. If you could have spent the money on a different investment that would have generated a return Opportunity Cost Definition - Economics Help
lost opportunity definition and meaning | AccountingCoach
The Role Of Opportunity Cost In Financial Decision Making
What is opportunity cost? | AccountingCoach
Opportunity cost is a concept in microeconomics that tells you about the output and potential opportunities foregone. In this article, we will learn what is opportunity cost, examples, sunk cost, explicit cost, and implict cost. The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative. Since people must choose, they inevitably face trade-offs in which they have to give up things they desire to get other things they desire more.