Marias company recently experienced a major system outage du

Maria\'s company recently experienced a major system outage due to the failure of a critical component. During that time period, the company did not register any sales through its online site. Which type of loss did the company experience as a result of lost sales?

Solution

Opportunity cost

Opportunity cost refers to a advantage that a person could have received, but gave up, to take an additional course of action. Stated in a different way, an opportunity cost represent an alternative given up when a choice is made. This cost is, therefore, most relevant for two jointly exclusive events. In investing, it is the difference in return between a chosen asset and one that is necessarily passed up.