OUTLAY COSTS AND OPPORTUNITY COSTS

Outlay costs and Opportunity costs:

•  Outlay costs involve actual expenditure of funds on, say, wages, materials, rent, interest, etc. Opportunity cost, on the other hand, is concerned with the cost of the next best alternative opportunity which was foregone in order to pursue a certain action.
•  It is the cost of the missed opportunity and involves a comparison between the policy that was chosen and the policy that was rejected. For example, the opportunity cost of using capital is the interest that it can earn in the next best use with equal risk.
• A distinction between outlay costs and opportunity costs can be drawn on the basis of the nature of the sacrifice. Outlay costs involve financial expenditure at some point of time and hence are recorded in the books of account.
•  Opportunity cost is the amount or subjective value that is foregone in choosing one activity over the next best alternative. It relates to sacrificed alternatives; it is, in general not recorded in the books of account.
• The opportunity cost concept is generally very useful for business managers and therefore it has to be considered whenever resources are scarce and a decision involving choice of one option over other(s) is involved. e.g., in a cloth mill which spins its own yarn, the opportunity cost of yarn to the weaving department is the price at which the yarn could be sold. This has to be considered while measuring profitability of the weaving operations.
• In long-term cost calculations also opportunity cost is a useful concept e.g., while calculating the cost of higher education, it is not the tuition fee and cost of books alone that are relevant. One should also take into account the earnings foregone, other foregone uses of money which is paid as tuition fees and the value of missed activities etc. as the cost of attending classes.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

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Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

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3.Bullet and Heading given for Long term memorisation.

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5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

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GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int