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Opportunity Cost vs. Sunk Cost. Accounting Profit vs. Economic Profit. The Bottom Line. Business Business Essentials. Key Takeaways Opportunity cost is the forgone login first horizon yourmortgageonline.com that would have been derived from an option other bank for credit card the one that was chosen.
To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others. Considering potential opportunity costs can guide bank for credit card and organizations to more profitable decision making. Opportunity cost is a strictly internal measure used for strategic planning; it is not included in accounting profit http://posttheday3.com/wisconsin/payday-loans-bellingham.php 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 to upgrade company equipment or hire additional workers, or buying stock A vs.
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