Week 3, DQ2 - team for attending UOP I know that in the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 3, DQ 2 Opportunity cost is an important factor to consider in various incremental analysis decisions. Give an example of a company or a personal situation where the “opportunity cost” swayed the decision to something different than what a simple incremental analysis would have suggested. Opportunity cost is associated with the cost of bypassing the next best choice when decision-making. An example of this is, say that capital is used for a certain purpose, the opportunity cost here is the value of the next best purpose that capital could have been used for. Simply put, opportunity cost is the value of what you give up, in order to pursue something else. A personal example of opportunity cost is that I gave up playing on a men’s softball
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: team for attending UOP. I know that in the long-run, giving up a non-paying sport for a Bachelor’s degree is the best option for me. The trade-offs for attending UOP and getting my degree far outweigh giving up softball. A business example is at the company that I currently work for. A few years ago, the owner had to make a decision of whether to invest in Ardell eyelashes or a manufacturing company that made wigs. The owner opted for purchasing the Ardell line, taking on a huge risk, but used his own business experience and obviously made the right decision. Recently, the owner of the company I work for bought a competitor’s line of Paraffin wax brand-named Thermal Spa, instead of investing in badly needed technology....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online