This paper will talk about the opportunity cost. The definition of the opportunity cost is an economic concept relating to income forgone because an opportunity to earn income was not pursued. For example, I have a choice to go to class tonight, and my opportunity cost is if I don't go to class I will miss out on learning. This method is not recognized by the finical accounting community, however it is an important factor in utilizing company's resources.
Opportunity cost can be both beneficial and non-beneficial for a company to consider. …
- Opportunity Cost
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