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







Related Discussions:- Opportunity cost or residual loss, Assignment Help, Ask Question on Opportunity cost or residual loss, Get Answer, Expert's Help, Opportunity cost or residual loss Discussions

Write discussion on Opportunity cost or residual loss
Your posts are moderated
Related Questions
Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Weaknesses of WACC as Discounting Rate WACC/Overall cost of capital has the following problems like a discounting rate as:  It can simply be used as a discounting

ascascasc

Price Earnings Ratio Price earnings (P/E) or ratio =  Market price per share (MPS)/Earnings per share                                     OR    = Market value of equity /Ea

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

The construction of a highway is broken into 14 activities as shown in the following table. Draw a bar chart of this construction project. Activity ID Desc

You are asked to select three variables for a sensitivity analysis of weighted average cost of capital, what would you choose and why? Weighted average cost of capital is th

CBK - Monetary Policy The money supply in the economy has a main effect on both the rate of inflation and the level of economic activity. The level of money supply is controll

Disadvantages of Payback Period 1. Does not receive into account time value of money and supposes that a shilling obtained in the 1 st year and in the N th year have the sim

Constant amount per share or fixed D.P.S. 1. The DPS is fixed in total amount of irrespective of the earnings level. These generate certainty and are consequently preferred vi