{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Post 3 - reversed as they have occurred in the past and...

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

View Full Document Right Arrow Icon
Julie Kenison 8 May 11 8:48 AM MST Hello all, Opportunity costs are the benefits forgone because one course of action is chosen over another. These costs are extremely important for management decision makers but are not included in the accounting records. They are usually the most difficult costs to analyze in decision making because there presents a challenge in determining which costs are relevant and which costs need to be filtered out as decisions are made for the future based on past information. One error is considered how sunk costs are treated as they cannot be changed or
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: reversed as they have occurred in the past and past actions cannot be altered by future decisions or actions. Hi Julie, Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs, and trade-offs result in an opportunity cost . While the cost of a good or service often is thought of in monetary terms, the opportunity cost of a decision is based on what must be given up (the next best alternative) as a result of the decision. Any decision that involves a choice between two or more options has an opportunity cost. Good post! Jack...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online