Opportunity costs
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IGC-DEFINITION (abbreviated)
Opportunity costs
Opportunity costs are the costs of the alternative use of a factor in short supply. They are to be considered in decision accounting when a bottleneck situation occurs. If, for example, there is a shortage of production capacity and a product cannot be manufactured in adequate quantities, then the predictable losses in contribution margin are the opportunity costs to choose the other product.
from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)
