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CBAP · Question #73

A business analyst is helping management determine which solution they should choose. As it happens that the organization can only choose one of the two solutions due to time and resource restrictions

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Strategy Analysis

Question

A business analyst is helping management determine which solution they should choose. As it happens that the organization can only choose one of the two solutions due to time and resource restrictions. Solution A worths $456,000 to the organization while solution B worths $565,000 to the organization. While solution A costs less, it is less risky and takes less time to complete so management elects to seize Solution A. What is the opportunity cost?

Options

  • A$565,000
  • BThere is not enough information to know how much the solution will cost the organization.
  • C$109,000
  • D$456,000

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Topics

#opportunity cost#solution selection#decision analysis#cost analysis
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