Opportunity costs: In simple terms, opportunity cost refers to the benefits of the best alternative foregone. As the investment in a project involves commitment of the firm’s investible funds it becomes relevant to consider the opportunity of getting some benefits by employing the resources on some other alternative. For example, in an expansion scheme the economic value of the space required rather than its book value is relevant. In a replacement decision, the realizable value rather then the book value of the old may be relevant as a reduction of the cost of replacement. This type of cost is relevant for all types of investment decision. Imputed cost is a kind of opportunity cost. It is the cost which is not actually incurred, but would be incurred in the absence of self-owned factors, e.g. cost of retained earnings, rent on company owned facilities, etc.
The following two tabs change content below.
What is meant by a Guarantee company? State the similarities and dissimilarities between the Guarantee Company and a Company having share Capital.BMS Team| | | Business Law, Notes| 0
Meaning: Where it is proposed to register a company with limited liability, it can be limited Guarantee Company by...
Login or Register
There are no users currently online
- Black Book Project Topic Ideas For Marketing on
- How To Survive And Avoid ATKT BMS Exams? on
- What Are The Contents of Induction Programme? on
- Karwa Chauth WhatsApp Status in Hindi, English To Share With Wife / Husband on
- Latest Eid Milad-Un-Nabi SMS Messages, Quotes And Wishes 2015 on
- B.M.S. SEMESTER – VI EXAMINATION TIME TABLE on
- KT System in BMS Exams! on
- TYBMS Sem 5 CBSGS 75:25 April 2016 ATKT Exam Results Declared on 20 July 2016 on
- TYBMS Sem 6 (Revised) Exam Date! on
- Inventory Management on
- Tybms sem 6 results 2019 declared on 19th June 2019 June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! June 15, 2019
- Business Communications II FYBMS Question Bank 2019 March 21, 2019
- Business Environment Question Bank FYBMS 2019 March 21, 2019
- Business Mathematics Question Bank FYBMS 2019 March 21, 2019