What Is Opportunity Cost and Why Do You Need to Understand It
A Guide to the Project Management Body of Knowledge (PMBOK® Guide) should be your primary resource when studying for the PMP Exam as it is the globally recognized standard and guide for the project management profession. However, it does not cover every possible topic that the PMP Exam may touch on.
One of those topics not covered by the PMBOK® Guide is Opportunity Cost. In this article, we explain why as a project manager you need to understand Opportunity Cost and what it is exactly. We will also go through a couple of examples of Opportunity Cost questions.
Contents of this article include:
- Why does a Project Manager need to understand Opportunity Cost?
- What is Opportunity Cost?
- PMP Exam Sample Question 1
- PMP Exam Sample Question 2