Businesses need to minimize the risk of failure and maximize the chances of success, which is why managers need facts and numbers to work with when developing business strategies and choosing options.

Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

When we choose to spend $10 more than usual for a bottle of wine, we'll have $10 less to spend on an appetizer, a dessert, or ten songs on iTunes. That's known as the "opportunity cost" of that choice ...

The worst outcome of a startup project isn’t failure. If failure is quick and cheap, the value of the gained insight might outweigh the cost of the failure. The worst outcome is to join the so-called ...

Forbes contributors publish independent expert analyses and insights. Tim Maurer covers how personal finance is more personal than finance. May 05, 2024, 07:00am EDT Sunk cost, opportunity cost, and ...

You may not recognize it, but opportunity cost affects your business every single day. Opportunity cost is essentially what you give up (the benefits of the next best alternative) when you make a ...

When deciding which treatments to cover, states and commercial payers must wrestle with opportunity costs as new therapeutics come to market. A panel at Virtual ISPOR 2020 discussed some of the ...

The cost of tariffs gets a lot of popular media attention, but it's a shallow treatment of a complex disease. Yesterday Bloomberg ran a piece titled, “The Age of Global Supply Chains Is in Trouble,” ...

Many of us pride ourselves on being resourceful and self-sufficient. Tackling tasks ourselves—whether preparing a home-cooked meal or taking on a complex work project—often feels rewarding. However, ...

Everything we do and every choice we make has an opportunity cost. In a world of scarce time and resources each choice necessarily means rejecting many other possible opportunities. One of the best ...

Every entrepreneur knows the feeling: a CRM full of promising leads, a growing contact list and ambitious revenue goals. Yet somehow, those connections never quite convert at the rate you’d hoped. The ...