Simply stated, an opportunity cost is the cost of a missed opportunity. It is the opposite of the benefit that would have been gained had an action, not taken, been taken—the missed opportunity. This ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Amy is an ACA and the CEO and founder of OnPoint Learning, a ...

Businesses make a variety of decisions on a daily basis: choosing the appropriate amount of inventory, balancing cash flows and selecting the ideal marketing plan are just a few. However, since ...

Businesses need to minimize the risk of failure and maximize the chances of success, which is why managers need facts and numbers to work with when developing business strategies and choosing options.

Opportunity cost is the missed gain from not choosing a better option. Calculating future investment opportunity costs is complex and not always precise. Consider opportunity costs to optimize ...

Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

Opportunity cost is the cost of what is given up when choosing one thing over another. In investing, the concept helps show the cost of an investment choice by showing the trade-offs for making that ...

When an investor is analyzing and comparing options, opportunity cost reflects the potential benefits that the investor gives up by electing against some of the options. Read on to learn about the ...

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An opportunity cost is a benefit that an individual or business forgoes because they made one decision instead of another. In other words, opportunity cost could be described with the acronym COMO: ...