Friday, 14 February 2020

Examples of opportunity cost - as an accounting topic

Examples of opportunity cost - as an accounting topic

(re: https://www.referenceforbusiness.com/management/Ob-Or/Opportunity-Cost.html)


"Opportunity costs are often overlooked in decision making. For example, to define the costs of a college education, a student would probably include such costs as tuition, housing, and books. These expenses are examples of accounting or monetary costs of college, but they by no means provide an all-inclusive list of costs. There are many opportunity costs that have been ignored: 
(1) wages that could have been earned during the time spent attending class, 
(2) the value of four years' job experience given up to go to school, 
(3) the value of any activities missed in order to allocate time to studying, and 
(4) the value of items that could have purchased with tuition money or the interest the money could have earned over four years"

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