Megastar Software recently developed new spreadsheet software, Ad-soon, which to
ID: 2592456 • Letter: M
Question
Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Explain why opportunity costs represent a common source of error in making cost analyses (Please answer in pargraph by critical thinking) Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Explain why opportunity costs represent a common source of error in making cost analyses (Please answer in pargraph by critical thinking) Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Explain why opportunity costs represent a common source of error in making cost analyses (Please answer in pargraph by critical thinking)Explanation / Answer
Opportunity costs refers to benefit foregone when one option is preferred over the other.
Simply saying the next best alternative is called Opportunity costs.
Opportunity costs represent a common source of error in making cost analyses because
1. If we are forget to account for significant costs and benefits.
2. If we overestimate the potential benefit or underestimate the anticipated cost.
3. If we are making decisions based on past experiences.
4. If we are unrealistically forecasting inflation or rate of return.