Comments on: Opportunity Cost http://china232.com/blog/business-english/opportunity-cost Learn about us and learn English! Fri, 10 Feb 2012 19:23:01 +0000 http://wordpress.org/?v=2.1.3 By: cherta http://china232.com/blog/business-english/opportunity-cost#comment-652 cherta Sun, 23 Mar 2008 03:06:46 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-652 Here is a good explanation you gave, Andy, but I'd like to give my own. The opportunity cost of any resource (product, service etc.) actually equals the cost (the value) of it in its best usage. It's very significant in distinguishing accounting and economic profit. The last one is significant for making managerial decisions about where to invest your money, your efforts. It's also logically close to methods of project analysis, especially to the method, called DCF (discounted cash flows). It takes into account "invisible" benefits from the alternative ways of investing your money, resources. Those alternative benefits turn to costs for your business, because you refuse them for benefit of the only one you've chosen. Why did I add "in its best usage"? Well, let’s take again your example with going to school. You assumed that instead of going to school you would be able to earn $30000. I’d like to add to this case, that you would be able to earn $30000, working as a bartender in “Praha”, $25000, working as an accountant assistant and $20000, being a part-time worker in “McDonalds”. In this new situation the opportunity cost remains $30000, because you get the highest price for your labor resource and, thus, the position of the bartender is the best usage for your workforce. Here is a good explanation you gave, Andy, but I’d like to give my own. The opportunity cost of any resource (product, service etc.) actually equals the cost (the value) of it in its best usage. It’s very significant in distinguishing accounting and economic profit. The last one is significant for making managerial decisions about where to invest your money, your efforts. It’s also logically close to methods of project analysis, especially to the method, called DCF (discounted cash flows). It takes into account “invisible” benefits from the alternative ways of investing your money, resources. Those alternative benefits turn to costs for your business, because you refuse them for benefit of the only one you’ve chosen. Why did I add “in its best usage”? Well, let’s take again your example with going to school. You assumed that instead of going to school you would be able to earn $30000. I’d like to add to this case, that you would be able to earn $30000, working as a bartender in “Praha”, $25000, working as an accountant assistant and $20000, being a part-time worker in “McDonalds”. In this new situation the opportunity cost remains $30000, because you get the highest price for your labor resource and, thus, the position of the bartender is the best usage for your workforce.

]]> By: samson http://china232.com/blog/business-english/opportunity-cost#comment-673 samson Tue, 25 Mar 2008 07:59:28 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-673 this is a very good question. A couple of days ago , i think about it carefully. Sometimes we must put our eyes in the future and what great chances we will meet after school , we don not know now. maybe good ,maybe bad. this is a very good question. A couple of days ago , i think about it carefully. Sometimes we must put our eyes in the future and what great chances we will meet after school , we don not know now. maybe good ,maybe bad.

]]> By: Adriano http://china232.com/blog/business-english/opportunity-cost#comment-705 Adriano Thu, 17 Apr 2008 01:45:50 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-705 This is cool. whe use this kind of therms in finacil life. the cost oportunity is always relative. Because we, i dont know if is used this expression in english but, we have to open hand of doing something we want to do another thing that is important for us too! Nice subject Andrew!! This is cool. whe use this kind of therms in finacil life. the cost oportunity is always relative. Because we, i dont know if is used this expression in english but, we have to open hand of doing something we want to do another thing that is important for us too!

Nice subject Andrew!!

]]> By: Adriano http://china232.com/blog/business-english/opportunity-cost#comment-706 Adriano Thu, 17 Apr 2008 01:46:19 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-706 This is cool. whe use this kind of therms in finacil life. the Opportunity Cost is always relative. Because we, i dont know if is used this expression in english but, we have to open hand of doing something we want to do another thing that is important for us too! Nice subject Andrew!! This is cool. whe use this kind of therms in finacil life. the Opportunity Cost is always relative. Because we, i dont know if is used this expression in english but, we have to open hand of doing something we want to do another thing that is important for us too!

Nice subject Andrew!!

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]]> By: Kassandra Lavancha http://china232.com/blog/business-english/opportunity-cost#comment-6397 Kassandra Lavancha Thu, 12 Jan 2012 11:15:40 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6397 Exceptional submit, I do think blog keepers must acquire a great deal out of this webpage its pretty end user genial. A new good facts about at this point. Exceptional submit, I do think blog keepers must acquire a great deal out of this webpage its pretty end user genial. A new good facts about at this point.

]]> By: win prizes online http://china232.com/blog/business-english/opportunity-cost#comment-6591 win prizes online Sun, 22 Jan 2012 08:07:25 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6591 The heart of your writing whilst appearing reasonable in the beginning, did not settle perfectly with me personally after some time. Someplace within the sentences you actually were able to make me a believer unfortunately only for a short while. I nevertheless have a problem with your jumps in assumptions and one might do well to fill in all those breaks. In the event you can accomplish that, I would definitely be impressed. The heart of your writing whilst appearing reasonable in the beginning, did not settle perfectly with me personally after some time. Someplace within the sentences you actually were able to make me a believer unfortunately only for a short while. I nevertheless have a problem with your jumps in assumptions and one might do well to fill in all those breaks. In the event you can accomplish that, I would definitely be impressed.

]]> By: valo vilag http://china232.com/blog/business-english/opportunity-cost#comment-6634 valo vilag Fri, 27 Jan 2012 04:54:57 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6634 Good day! I know this is kind of off topic but I was wondering which blog platform are you using for this website? I'm getting tired of Wordpress because I've had problems with hackers and I'm looking at options for another platform. I would be awesome if you could point me in the direction of a good platform. Good day! I know this is kind of off topic but I was wondering which blog platform are you using for this website? I’m getting tired of Wordpress because I’ve had problems with hackers and I’m looking at options for another platform. I would be awesome if you could point me in the direction of a good platform.

]]> By: Sharyn Aiu http://china232.com/blog/business-english/opportunity-cost#comment-6703 Sharyn Aiu Mon, 30 Jan 2012 18:09:24 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6703 Appreciating the time and effort you put into your blog and detailed information you provide. It's awesome to come across a blog every once in a while that isn't the same out of date rehashed information. Excellent read! I've saved your site and I'm adding your RSS feeds to my Google account. Appreciating the time and effort you put into your blog and detailed information you provide. It’s awesome to come across a blog every once in a while that isn’t the same out of date rehashed information. Excellent read! I’ve saved your site and I’m adding your RSS feeds to my Google account.

]]> By: Guy Heise http://china232.com/blog/business-english/opportunity-cost#comment-6777 Guy Heise Fri, 03 Feb 2012 14:14:32 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6777 Hello would you mind sharing which blog platform you're using? I'm looking to start my own blog in the near future but I'm having a tough time selecting between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design and style seems different then most blogs and I'm looking for something unique. P.S Apologies for being off-topic but I had to ask! Hello would you mind sharing which blog platform you’re using? I’m looking to start my own blog in the near future but I’m having a tough time selecting between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design and style seems different then most blogs and I’m looking for something unique. P.S Apologies for being off-topic but I had to ask!

]]> By: Tafline http://china232.com/blog/business-english/opportunity-cost#comment-6810 Tafline Mon, 06 Feb 2012 18:15:54 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6810 That is extremely beneficial, thanks for revealing. I'll be confident many others will look at goods this identical design That is extremely beneficial, thanks for revealing. I’ll be confident many others will look at goods this identical design

]]> By: Jair http://china232.com/blog/business-english/opportunity-cost#comment-6814 Jair Tue, 07 Feb 2012 11:04:58 +0000 http://china232.com/blog/business-english/opportunity-cost#comment-6814 Dear all. Good morning! Congratulation for your excellent work. God bless you always! Truly yours, Dear all.

Good morning!

Congratulation for your excellent work.

God bless you always!

Truly yours,

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