ECONOMICS

Detailed explanation-1: -Opportunity cost refers to a benefit that a person could have received but gave up to take another course of action. It is the cost most relevant for two mutually exclusive events. It does not involve any cash outflow.

Detailed explanation-2: -Fixed Cost Was this answer helpful?

Detailed explanation-3: -A non-cash charge is an accounting expense that does not involve any cash outflow. Non-cash charges can include expenses such as depreciation, amortization, and depletion. Since non-cash charges are still included as expenses, they will be accounted for as deductions in the income statement and lower overall earnings.

Detailed explanation-4: -It does not take into consideration, the cost of time.

Detailed explanation-5: -Outlay and Opportunity Costs Outlay costs include the actual expenditure of funds on factors like material, rent, wages, etc. On the other hand, opportunity costs are the costs of missed opportunities. In other words, it compares the policy chosen and policy rejected.