4 ms·
Not making $50,000 is in no way the same as someone removing $50,000 from your bank account. It's an opportunity cost.
by ents 13y ago
Not making $50,000 is in no way the same as someone removing $50,000 from your bank account. It's an opportunity cost.
- vonmoltke 13y ago"[I]n no way the same"? Either one reduces my profit for the year by $50,000. One comes out of revenue, the other comes out of cash on hand (or increases debt, as the case may be). Yes, there are trade-offs and differing side effects from the situations, but they are similar in their effect on the bottom line. Also, losing $50,000 in business because of a supplier or subcontractor failure is not an opportunity cost.