Opportunity cost or residual loss, Finance Basics

Opportunity Cost or Residual Loss

It is the cost due to the failure of both parties to act optimally like as in example of

A. Lost opportunities because of incapability to create fast decision due to tight internal control system

B. Failure to undertake high risk high return projects through the manager leads to lost profits when they assume low risk, low return projects.

Restructuring Costs

Restructuring Costs - like an example of new I.C.S., business method reengineering etc.

Posted Date: 1/29/2013 1:40:00 AM | Location : United States







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