Definition
It's the option that was not taken because there weren't better options for you. Putting all your eggs in one basket can be risky, but takes more time and effort to plan.
In the room
How the word shows up in a real conversation.
You know Opportunity cost is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Value of the next best alternative that is foregone when making a decision.
Common mistake
Using Opportunity cost as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Operations management
Administration of business practices to create the highest level of efficiency.
Read definition →
Operations research
Analytical method of problem-solving and decision-making in business operations.
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Option grant
Award of stock options to employees as part of compensation or incentive programs.
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Order backlog
Accumulated orders that have been received but not yet fulfilled.
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