Question

Then, select one of the following types of costs: sunk costs, opportunity costs, or accounting costs, and think about a scenario where this type of cost was important for informing decision making. Think about another scenario where this type of cost was important for furthering stakeholder agendas.

By Day 3

Post the following:

Provide an explanation of a scenario of how the type of cost you have selected (sunk, opportunity, or accounting) may be used to further stakeholder agendas.

Answer 1

Opportunity cost of a product is the benefit of next best option forgone, when making a choice between a number of alternative. All time, the business try to reduce this cost, this is reduced by taking best decision.

Stakeholder are the individual, groups who are affected by the business activity, and thus have an interest in its activities. Stakeholder include:-

Customer     : - Want a good Product in terms of price and quality.

Owner          : - Are the people who invested in business. They want to maximize profit

Suppliers     :- Generally wants maximum possible, but also consider business position as it want to keep on trading

Employees :- They always want job satisfaction, high pay, job security, promotion.

To satisfy demand of all the stakeholder opportunity cost is calculated.