In Project Management area, Opportunity Cost term refer to profit or value that you give up by not choosing a project. For example, if you are asked to select one project from three different projects, what you will choose
Projects | Profit | Duration |
Project A | $30,000 | 20 weeks |
Project B | $55,000 | 18 weeks |
Project C | $65,000 | 21 weeks |
Looking at the profit and time duration you may select Project C over other projects. In that case you will give up Project A and Project B. The profit that you would have earned from Project A ($30,000) and Project B ($55,000) is called “Opportunity Cost”.
Here are some of the videos on Opportunity Cost that you can enjoy from YouTube.
What is Opportunity Cost?
Opportunity Cost: iPhone vs X-Box
Multiple Opportunity Cost
Bank of PMP Questions