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Opportunity cost should be recorded as : 1- An income statement account . 2- A balance sheet account . 3- Another option .

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Question ajoutée par Utilisateur supprimé
Date de publication: 2014/11/15
Larry Thess Palasan CPA
par Larry Thess Palasan CPA , General Accountant , Tamas Construct LLC

opportunity cost is not recorded in any financial statements. However such computation is important in decision making for management purposes.

mohamed Hakim CMA CPA Candidate
par mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Opportunity cost  is not  recorded in financial statements 

 

You can put it in normal cost report used internal by company managment 

 

 

Ahmed Salah Elsherbiny Eissa
par Ahmed Salah Elsherbiny Eissa , اداري , هيئة اسواق المال

Opportunity cost is not an income that you can get or an expense that you spend , its the benefits you could have received by taking an alternative action. so its unrecorded.

Mohamed Sabry. MBA,CMA
par Mohamed Sabry. MBA,CMA , Finance Manager , GROUP OF COMPANIES ً(Wholesale/ RETAIL ) FMCG - AUTO

it's economic indicator not financial profit , that help decision maker to compare with other alternatives'

Badruddien Gismallah Ali Abdurahman
par Badruddien Gismallah Ali Abdurahman , مدير مالي واداري , شركة العواد للاستثمار والتطوير

Opportunity cost should not be recorded in the company accounts but the manager should put it  in consideration on decision-making

Sara Naeem
par Sara Naeem , Trainee Finance officer , Wah Brass Mill

Agree with the given answer.

manaf almas
par manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

opportunity cost should not be recorded as any where , it is considering only for decision making purpose

Ednalyn Banuelos, CMA
par Ednalyn Banuelos, CMA , Projects Accountant , Grade Ref., LLC

Agree with the above answers. Opportunity cost is the income or benefit given up when one alternative is selected over another. Its not recorded in the company books but is considered in making decisions.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

not record because it is non cash - expenses / profit   

mohammed abdel azim
par mohammed abdel azim , Tech. Clerk , CLEANCO

Opportunity cost should not be recorded in income statement or balance sheet, but Opportunity cost is cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Example. If we have £20 we can spend it on an economic textbook or we can enjoy a meal in a restaurant. If we spend that £20 on a textbook, the opportunity cost is the restaurant meal we cannot afford to pay.