Article Title
Other Form of Name
Akers, Michael D., 1955-
Publication Date
Fall 1986
Abstract
Opportunity costs are addressed in considerable detail in accounting and economic literature and are commonly defined as the rate of return or potential benefits that could be realized from the best forgone alternative investments. Accountants recognize the existence of opportunity costs but do not record such costs in the accounting records because an outlay cost has not been incurred. Outlay costs are defined as past, present or future cash outflows. Economists, however, do not differentiate between opportunity costs and outlay costs. The difference in treatment of opportunity costs and the importance of such costs is evidenced by the following comments in the literature.
Recommended Citation
Akers, Michael D.
(1986)
"Opportunity costs in the accounts,"
Accounting Historians Notebook: Vol. 9
:
No.
2
, Article 1.
Available at:
https://egrove.olemiss.edu/aah_notebook/vol9/iss2/1