What is it?

Opportunity cost represents the value of the best alternative that is forgone when choosing one action over another.

In optimisation, opportunity cost helps prioritise limited resources.

Examples in Action

• Choosing one test over another
  
• Allocating development capacity
  
• Deciding between optimisation and acquisition
  
• Prioritising short-term versus long-term initiatives
  

Typical Outcomes / Results

• More intentional prioritisation
  
• Reduced low-impact work
  
• Improved strategic focus
  
• Better use of limited capacity
  

This glossary entry reflects widely used economic decision principles.