OC meaning in Business ?

Answer:

What is Opportunity Cost mean?

In microeconomic theory, the opportunity cost of a particular activity option is the loss of value or benefit that would be incurred (the cost) by engaging in that activity, relative to engaging in an alternative activity offering a higher return in value or benefit.

In basic equation form, opportunity cost can be defined as:

Opportunity Cost = FO (returns on best forgone option)

Directly or indirectly, opportunity cost underpins the majority of day-to-day economic decisions that are made in society. For example, the opportunity cost of mowing one’s own lawn for a doctor or a lawyer (who might otherwise make $100 an hour if they elected to work overtime during that time instead) would be higher than for a minimum-wage employee (who in the United States might earn $7.25 an hour), which would make the former more likely to hire someone else to mow their lawn for them.

As a representation of the relationship between scarcity and choice, the objective of opportunity cost is to ensure efficient use of scarce resources. It incorporates all associated costs of a decision, both explicit and implicit. Opportunity cost also includes the utility or economic benefit an individual lost, if it is indeed more than the monetary payment or actions taken. As an example, to go for a walk may not have any financial costs imbedded in to it. Yet, the opportunity forgone is the time spent walking which could have been used instead for other purposes such as earning an income.

However time spent chasing after an income might have health problems like in presenteeism where instead of taking a sick day one avoids it for a salary or to be seen as being active.

A production possibility frontier shows the maximum combination of factors that can be produced. For example if services were on the x axis of a graph and there were to be an increase in services from 20 to 25, this would lead to an opportunity cost for the goods that are on the y axis, as they would drop from 21 to 16. This means that as a result of the increase in consumption of services, the opportunity cost would be those 5 goods that have decreased.

Regardless of the time of occurrence of an activity, if scarcity was non-existent then all demands of a person are satiated. It’s only through scarcity that choice becomes essential, since the use of scarce resources in one way prevents its use in another way, resulting in the need to make a selection and/or decision.

Sacrifice is a given measurement in opportunity cost of which the decision maker forgoes the opportunity of the next best alternative. In other words, to disregard the equivalent utility of the best alternative choice to gain the utility of the best perceived option. If there were decisions to be made that require no sacrifice then these would be cost free decisions with zero opportunity cost. Only through the analysis of opportunity cost, the company can choose the most beneficial project, based on when the actual benefits are greater than the opportunity cost, so that the limited resources can be optimally allocated to achieve maximum efficiency.

reference

Full Form	Category
Off Campus	Academic & Science
Open Concepts	Academic & Science
Online Class	Academic & Science
Organic Content	Academic & Science
Oceans and Climate	Academic & Science
Oklahoma Christian	Academic & Science
Oberlin College	Academic & Science
Original Chilling	Academic & Science
Open/Close	Business
Off Center	Business
Only Caucasians	Business
Of Christ	Business
Orfevrerie Christofle	Business
Outsourced Company	Business
Open Corner	Business
Occupation Certificate	Business
Other Company	Business
Octopus Card	Business
Organizational Climate	Business
Owens Corning	Business
Old Colony	Business
Opportunity Cost	Business
Organic Carbon	Chemistry
Optimal Classification	Chemistry
Other Characters	Community
Original Credit	Community
Other Contributors	Community
Original Character	Community
Other Category	Community
Other Child	Community
Organizing Committee	Community
Oliver Cromwell	Community
Original Content	Community
Old Covenant	Community
Operation Christ	Community
Overated Crap	Community
O Canada	Community
Over Commercialized	Community
Our Crowd	Community
Own Creation	Community
Other Caste	Community
Open Category	Community
Opening Ceremony	Community
Off Camera	Community
Overtly Christian	Community
Operation Classroom	Community
Other Character	Community
Overgrown Children	Community
Operation Channel	Computer and Networking
Output Compare	Computer Assembly Language
Overclocking	Computer Hardware
Overclock	Computer Hardware
Over-clocked	Computer Hardware
OverClocking/OverClock	Computing
Orange County	Country Specific
Orange Coast	Earth Science
Odessa College	Educational Institute
Over Current	Electronics
Optical Circuit	Electronics
Optical Cable	Electronics
Open Collector	Electronics
Open Circuit	Electronics
Operating Characteristic	Electronics
Outrageous Chaos	General
Orange Crush	General
Orrible Children	General
Oleoresin Capsicum	General
Outta Control	General
Overrated Claptrap	General
Old Clothes	General
Outrigger Canoe	General
Obedience Champion	General
Office in Charge	General
Organisation Communication	General
Origanal Character	General
Ottawa Carleton	General
Oringal Character	General
Original Cookies	General
Ordinary Chondrites	General
Output Coupler	General
On Centre	General
Oral Contraception	General
Original Creation	General
overclocking Of course	General
Optical Circulator	General
Opposing Counsel	General
Officer in Command	General
our Acronym	General
Old Chicago	General
Orospu Cocugu	General
Over Committed	General
Orange Cat	General
Ostrich Cookies	General
Oh Crap	General
Own Child	General
Offended Chicken	General
The Order of Canada	General
Organize and Collaborate	General
Oversite Concrete	General
Object Controller	General
Original Cat	General
Original Combo	General
Overwhelmingly Cool	General
Oriental Crisis	General
Ovarian Cyst	General
Oatmeal Cookie	General
Okeechobee County	Governmental
Office Call	Governmental
Official Campaign	Governmental
Obstruction Chart	Governmental
Officer's Cook	Governmental
Osawatomie City, Kansas	Governmental
Organized Crime	Governmental
Office of the Commissioner	Governmental
Immediate Office of the Commissioner	Governmental
Orange County (California)	Governmental
Ocean Cove	Governmental
Option Chain	Governmental
Olongapo City	Governmental
Organized Clan	Governmental
Oleander City (nick-name of Galveston, Texas)	Governmental
Oral Coersion	Governmental
Observatoire Cuirass	International
Organi Collegiali	International
Optimum Compaction	Maths
Oleoresin Capsicum (pepper spray for self-defense)	Medical
On Call	Medical
Oral Contraceptive	Medical
Obsessive Compulsive	Medical
Oral Care	Medical
Original Cub	Medical
Out of Character	Messaging
Of Course	Messaging
Own Character	Messaging
Outrageously Cute	Messaging
Operations Center	Military and Defence
Other Contingencies	Military and Defence
Observer Controller	Military and Defence
Ordnance Corps	Military and Defence
Optical Connection	Networking
Old Coherence	Physics Related
Occitan	Regional
Oregon City	Regional
Oklahoma City	Regional
Ocean City	Regional
Ocean County	Regional
Object Container	Softwares
Open Canvas	Softwares
On Center	Space Science
On-condition	Space Science
Operations Controller	Space Science
Operations Coordinator	Space Science
Orbital Check	Space Science
Open Cup	Sports
Open Canoe	Sports
Offensive Crouching	Sports
Original club	Sports
Open Carry	Sports
Operator Cutoff	Telecommunication
Optical Carrier	Telecommunication