The formula to calculate opportunity cost is straightforward. Here's a very simple way to put this formula into practice. Let's say you are deciding to invest in either Company A or Company B.

How do you calculate opportunity cost of capital? Comparing the returns on two different investments is the best way to determine the opportunity cost of capital. Check out the formula for ROI (return ...

and exclude fixed costs. The formula for calculating prime cost is: Prime Cost = Raw Materials + Direct Labor. What Labor ...