This paper presents a framework to help decision makers better measure the opportunity cost of resources with differing economic characteristics. After characterizing resources by the intrinsic lumpiness of acquisition (acquisition granularity), storability of benefits (expiration granularity), and control over the rate of consumption of available benefits (consumption granularity), this paper illustrates how these concepts can lead to improved decisions and assessment of observed practices.
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Research Article| September 01 2004
A Resource Granularity Framework for Estimating Opportunity Costs
Ramji Balakrishnan, Professor;
K. Sivaramakrishnan, Professor;
Online ISSN: 1558-7975
Print ISSN: 0888-7993
American Accounting Association
Accounting Horizons (2004) 18 (3): 197–206.
Ramji Balakrishnan, K. Sivaramakrishnan, Shyam Sunder; A Resource Granularity Framework for Estimating Opportunity Costs. Accounting Horizons 1 September 2004; 18 (3): 197–206. https://doi.org/10.2308/acch.2004.18.3.197
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