Saturday, October 27, 2007

Project Selection Method Key Terms - Opportunity and Sunk Cost

Opportunity Cost is:

  • The opportunity given up by selecting one project over another.

Sunk Cost is:
  • Non-recoverable project spent on the existing or last project. This is not related to bad debt as bad debt is over budget).

1 comment:

  1. Project selection helps a project manager in manageing a projct by helping in taking various decison of Organisation and also gives other option during problems.

    ReplyDelete