A cost that is used in deciding between investment choices. Opportunity cost represents the revenue that would have been generated by using the resources in a different way.
For example, the opportunity cost of purchasing a new server may include not carrying out a service improvement activity that the money could have been spent on. Opportunity cost analysis is used as part of a decision-making process, but opportunity cost is not treated as an actual cost in any financial statement.
A cost that is used in deciding between investment choices. Opportunity cost represents the revenue that would have been generated by using the resources in a different way.
For example, the opportunity cost of purchasing a new server may include not carrying out a service improvement activity that the money could have been spent on. Opportunity cost analysis is used as part of a decision-making process, but opportunity cost is not treated as an actual cost in any financial statement.
