Costing and Pricing Decisions

Opportunity cost means giving up something of value or importance to you to achieve a particular goal or outcome. It is a chance that causes you to miss out on something you want, but an individual can benefit by gaining something for the opportunity they accepted.

Opportunity cost is when there are multiple options for something and there are two or more that are the best or very, very, opportunity cost is the value of not doing the next best thing. for example Anthony is either going to have a bake sale or work at Arby's, at Arby's he gets a fry and a drink along with 50 % but the bake sale is estimated to make 100$-200$ and costs 50$ so Anthony's opportunity cost for the bake sail is 50$ and some food while the opportunity cost of the Arby's is 50$-150$. For Anthony to make a smart business decision he needs to know which would be more profitable in the long run: food that causes diarrhea or the foothold in the community of being a baker. Another example of opportunity cost is the classic go to college

What are opportunity costs? Give an example of an opportunity cost. Opportunity costs are the things that you give up when you make a choice. You may choose to buy a piece of clothing that you want and pass on buying expensive coffee drinks at the local coffee place for a few weeks.

2. What is meant by the term "opportunity cost"? Provide an example of an opportunity cost that does not involve an explicit monetary cost.

Sexton (2013) refers to opportunity cost as the chance given up because another choice was made instead. That means if I’m faced with two options and I can only choose one, the one I didn’t choose is the opportunity cost.

Opportunity Cost also works in regards to time. Eg- I only have two hours of free time. I could either go to a movie or meet a friend of mine. I choose to spend my time at the movie, the opportunity cost of this decision is the time I could have spent enjoying the company of my friend.

For example, you can spend an hour studying or an hour playing piano. The opportunity cost of your hour of piano playing is your hour of studying. Or, imagine going to the store. You can buy a cup of coffee or a danish. You decide on the coffee. The opportunity cost of that coffee was the danish. You were tired and needed to wake up, so you decided that the cup of coffee had a higher value to you than the danish. In the future, you might make the opposite choice if you are hungry and forgot to buy breakfast.

Opportunity cost is the highest valued, next best alternative that must be sacrificed to obtain something or to satisfy a need or want. An easy way to remember what opportunity cost is that when you choose to do something whether it be homework, sports, tv, etc. you lose something else. And what you lose is being able to appoint in your next best alternative.

The opportunity cost equal to what a firm give up in order to use factors which in neither in purchases or hires. It’s the opposite of an explicit cost, which is borne directly.

Cost allocation is a method to determine the cost of services provided to users of that service. It does not determine the price of the service, but rather determines what the service costs to provide. It is important to determine the cost allocation of the services, in order to determine a justifiable fee/charge/tax for those services.

3. Opportunity costs involves giving up something to do something in return. For example, an individual has $20 to spend. He or she wants to go out to eat and to the movies. The opportunity costs involved here would involve the decisions made about these two. The individual could have a cheap fast food meal and go to the movie. Another option for the individual could be to

Opportunity cost refers to what you must give up when it comes to decision making when it comes to choice, or it relates to the value of the next best opportunity. Opportunity cost is the implication of scarcity in the economy. It entails where people have to choose between different alternatives when determining on how they shall spend their money and their time. The Nobel Price Economist winner Milton Friedman suggested that there is no free lunch for people who are fond of saying that instead, it means that in the world of scarcity everything has an opportunity cost. There is always an exchange involved in any decision you may wish to make (Greenberg, & Spiller, 2016). The profit a company may seem to obtain from the capital, equipment

Allround: Pricing was changed in line with the reported inflation, comparing with competitors and customer feedback from preceding periods. The price was varied in such a way that the firm absorbed minimal costs while most was passed on to the customer. The price for Allround throughout its lifecycle was higher than the main competitor (Besthelp). The main reason for this premium pricing was the high brand awareness and loyalty that made Allround the leader in the market. Mass discounts were varied based on sales report until a balance was found.

Managers’ use cost allocation for a number of reasons. First and foremost, cost allocation provides a methodology for assigning overhead costs of various activities, usually support departments, to products or

According to an accounting textbook, cost is defined as a resource sacrificed or foregone to achieve a specific objective. It is something given up in exchange. It is necessary for project managers to understand project cost management since project costs money and consumes resources.