Answer to Question #298546 in Microeconomics for garg

Question

Give an example of an opportunity cost that an accountant might not count as a cost. Why

would the accountant ignore this cost

Answer 1

When money does not change hands, the opportunity cost does not apply. Because money does not change hands, an example of this is the employer's opportunity cost for a different job. This cost would be overlooked by the accountant because no cash flow has happened to affect the balance sheet.