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. Opportunity cost analysis is an important part of a company's decision-making processes, but is not treated as an actual cost in any financial statement.
Related information about opportunity cost:
- Opportunity cost - Wikipedia, the free encyclopedia
Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen). It is the sacrifice related to the ...
- Opportunity Cost Definition | Investopedia
1. The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an ...
- Opportunity Cost: The Concise Encyclopedia of Economics | Library ...
When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you ...
- Opportunity Cost - YouTube
Sep 7, 2007 ... what is opportunity cost? examples and some thoughts on linear and concave PPFs.
- Opportunity Cost
Opportunity cost is the value of the next best choice that one gives up when making a decision...
- Opportunity cost - Merriam-Webster Online
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 ...
- Opportunity Cost | Microeconomics | Khan Academy
Opportunity cost (and marginal cost) based on the PPF.
- The Opportunity Cost of Economics Education - New York Times
Sep 1, 2005 ... A recent study confirms that most students emerge from introductory economics courses without having learned even the most important basic ...