Discover what the marginal cost of funds is, how it affects capital structure decisions, and why it matters for financial managers in choosing funding options.

When an investor is analyzing and comparing options, opportunity cost reflects the potential benefits that the investor gives up by electing against some of the options. Read on to learn about the ...

When businesses are planning how much to produce, they must pay close attention to marginal costs and marginal benefits – the incremental changes in costs and benefits that result from an increase in ...

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.

A rational business's main goal is always to maximize profits. As complicated as business processes can be, the end goal always remains reaching the maximum profit. There are many ways a company has ...

Learn the key financial metrics that signal a business shutdown point for single-product and multiproduct firms, based on managerial economics.

Once you understand opportunity cost, you’ll make smarter financial decisions, especially when you’re managing side gigs or investing your effort, time and money. Here’s what you should know, so you ...

Essentially, opportunity cost is the potential benefits or gains an investor, consumer or business misses out on when one alternative is chosen over another. Here are some key takeaways: You cannot ...

Costing is often a very confusing and frustrating topic with its standard costs, variable costs, fixed costs, marginal costs, budgeted costs, actual costs, relevant costs, etc. Why compound the ...

An opportunity cost is a benefit that an individual or business forgoes because they made one decision instead of another. In other words, opportunity cost could be described with the acronym COMO: ...