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Old June 6th, 2009, 10:18 AM
jon80 jon80 is offline
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Opportunity cost

Is it common practice to account for opportunity cost? Are there any specific guidelines for this practice?

The company on behalf of which I am carrying out research is in Malta (EU member).

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Old March 13th, 2015, 12:29 AM
Monika Goel Monika Goel is offline
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Quote:
Originally Posted by jon80
Is it common practice to account for opportunity cost? Are there any specific guidelines for this practice?

The company on behalf of which I am carrying out research is in Malta (EU member).


The opportunity cost is the value of the best alternative forgone, in such a situation where a choice needs to be made between several mutually exclusive alternatives on a given limited resources.
Opportunity costs extend beyond the monetary costs of a decision, but it also includes all real costs of making one choice over another, so it always and must be included in the accounts.

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