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Opportunity cost

Financial Management

If there is space having storage for materials. If suppose space had been rented out it would make income of 30000(rental). So now such opportunity cost can I deduct from my sales as OPPORTUNITY COST.

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Saravana Perumal

Saravana Perumal

CA Inter

2K+

21-Apr-23 13:52

191

Answers (4)

yes when one is evaluating options where such consideration makes sense


Sriram Somayajula

Sriram Somayajula

Admin

21-Apr-23 17:34

Sriram Somayajula Admin

yes when one is evaluating options where such consideration makes sense

Sorry sir. I didn't get it clearly


Thread Starter

Saravana Perumal

Saravana Perumal

CA Inter

2K+

21-Apr-23 18:42

if it were rented, it would be Income but in this case the company didn't rent it out, so it incurs loss making the storage space idle, so we can show it as loss in name of opportunity cost.


Dhanalakshmi Balu

Dhanalakshmi Balu

CA Final

3K+

22-Apr-23 09:25

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