Skip to content
Skip to main content

About this free course

Download this course

Share this free course

Organisations and the financial system
Organisations and the financial system

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.


Browse the glossary using this index

Special | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL

O

Opportunity cost

A key concept in economics, an opportunity cost is the cost related to the second best choice available to someone who has chosen from several mutually exclusive options. Thus it is a measure of what has been foregone by a particular course of action and expresses the basic relationship between scarcity and choice. Opportunity costs are not restricted to monetary or financial costs: the real cost of output foregone, lost time, pleasure or any other benefit that provides utility should also be considered an opportunity cost.


Outsourcing

Outsourcing is the contracting out by an organisation of a business function, typically previously carried out inside the organisation.