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Types of financing- Retained earnings
Financial Management
Are opportunity cost and Idle cost are one and the same. 1)If yes what are the other names for opportunity cost 2)If not what is the difference between the two Video Details ------------- Financial Management Types of Financing #7. Retained Earnings
Answers (3)
Opportunity cost is a broader issue.. Idle cost is one of the items under opportunity costs (for example retained earnings) .. opportunity cost arises when there is an opportunity and which is not being utilised.. for example if there is an existing printing machine which generates 1 lakh every year and say if it is planned to be sold then the opportunity of earning 1 lakh every year is lost and is hence considered an opportunity cost
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