Question

Importance of opportunity cost in managerial decision making

Answer 1

Opportunity Costs. Opportunity costs apply to many aspects of life decisions. Often, money becomes the root cause of decision-making. ... For time management, if you decide to spend time working late at the office on an important project, your opportunity cost is the benefit of spending quality family time at home.

Answer 2

Answer:

In business, opportunity costs play a major role in decision-making. ... If you decide to purchase a new piece of equipment, your opportunity cost is the money spent elsewhere. Companies must take both explicit and implicit costs into account when making rational business decisions