Assignment - 1

Assignment - 1

Assignment - 1

Question 1

In any business, some costs are not calculated normally in view of accounting system. In accounting system costs are calculated based on payments made in past or committed to paying in the future. Decision makers sometimes requires to include costs that do not require cash expense or outflow and this type of cost are known as opportunity cost. Opportunity cost compares the two decisions by analyzing the opportunity cost associated with each decision, and the option is selected that gives higher benefit (Drury, 2007).

By analyzing the options for benefactor is analyzed against ...