Opportunity costs
This query is : Resolved
17 January 2014
When do opportunity costs affect short run decisions? What accounting problems do opportunity costs involve?
18 January 2014
Dear Apurva,
Opportunity cost can affect any decision including the shortest possible horizons.
For eg: even a 1 month FD v/s investment in 30 days debt MF needs a opportunity cost analysis.
With regards to accounting, opportunity cost involves no problem as it is not accounted for in the accounting records.
Continuing with the earlier example: let say FD has 4% interest and Debt MF yield is 4.1%. Now the opportunity cost for investing in Debt MF is 4%. But in the books no such entry is passed.
Opportunity cost can affect any decision including the shortest possible horizons.
For eg: even a 1 month FD v/s investment in 30 days debt MF needs a opportunity cost analysis.
With regards to accounting, opportunity cost involves no problem as it is not accounted for in the accounting records.
Continuing with the earlier example: let say FD has 4% interest and Debt MF yield is 4.1%. Now the opportunity cost for investing in Debt MF is 4%. But in the books no such entry is passed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Rent lease agreement
- Relief u/s Section 89
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- Supply through E-commerce Operators
- STCG on ETF gold & silver
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
