Imagine that you have won $100 in the state lottery. You have a choice between spending the money on shopping now or putting it away in a
savings account for one year. You decide to spend the money now on shopping. Thus, you will lose the interest that you could have earned by
saving the money. The lost interest is the<u><em> opportunity cost</em></u> cost of spending money now.
Explanation:
The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has two options:
1. Spending the money
2. Save the money
Once the money is spending the opportunity costs is generated and it is measure by the interest rate lost for not keeping the money in a savings account that will generate an interest rate known as APY Annual Percentage Yield.
Imagine that you have won $100 in the state lottery. You have a choice between spending the money on shopping now or putting it away in a savings account for one year. You decide to spend the money now on shopping. Thus, you will lose the interest that you could have earned by saving the money. The lost interest is the <em><u>opportunity </u></em>cost of spending money now.
<span>adam was referring to his company's: Organizational culture
Company's organizational culture is a shared of value and principles that shared by all members of the companies. This value and principles will influence every aspect of company's operation and how they deal with the problems that they face.</span>
Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase
