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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1027 |
Essay's paper body
They should not be confused with money outflows.
By contrast, in economics, most formal models ignore this distinction between costs and payments.
Actual costs refer to real transactions, whereas opportunity costs refer to the alternative taken into consideration by decision makers who might want to choose the line of activity which minimize the costs...
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From an external point of view, it is difficult to ascertain which is the alternative considered.
Discretionary costs are not strictly necessary for current production but correspond to strategic goals (e.g. improving the firm's image through an advertising institutional campaign).
(Valentino Piana 2003 p 2)
Loyalty
Brand loyalty is important...
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