The Importance of Opportunity Costs in Financial Management in Connection to the Economic Profit

DOI

10.2991/aebmr.k.201211.058How to use a DOI?

Keywords

Financial management, economic profit, accounting profit, opportunity costs, alternative costs, financial analysis

Abstract

The main goal of the paper is to present the position of opportunity costs in the analysis of financial management. The article discusses the costs of lost opportunities, explains their importance for the financial management of business entities and, based on a theoretical basis, points to the need to consider these costs in relation to economic profit. The individual parts of the article provide a description of individual financial analysis, economic profit, alternative costs and their interconnection and the importance of their interconnection. The article also provides an in-depth search, which is a secondary basis for pointing out the importance and significance of the interconnection of the mentioned economic variables and phenomena.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dusan Karpac
AU  - Viera Bartosova
PY  - 2020
DA  - 2020/12/14
TI  - The Importance of Opportunity Costs in Financial Management in Connection to the Economic Profit
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 350
EP  - 353
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.058
DO  - 10.2991/aebmr.k.201211.058
ID  - Karpac2020
ER  -