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Tag Archives: opportunity cost

Project Opportunity Cost and Why You Need to Understand It

If you’re in the middle of preparing to take the Project Management Professional (PMP)® Exam you have undoubtedly read through A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition at least once (and possibly even more). The PMBOK should be your primary resource when studying for the exam as it is…

Cost Decisions in Project Management Accounting

Project managers are often called on to make decisions between different opportunities or different ways of accomplishing the goals and objectives of a company. The three types of cost that are used to make decisions are differential cost, sunk cost, and opportunity cost. Differential Cost Differential cost is simply the difference in cost between choosing…

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