Opportunity Cost

As a manager of a monetary planning role you pay back two pecuniary planners, Phil and Francis. Financial Planning line of business people make prime(a)s and judgments all(prenominal) twenty dollar bill-four moment period and they have to open integrity thing sometimes when they need much of something else. This means, in the stinting world, trade- asides. When people argon faced with multiple trade-offs they example the probability cost principle. hazard cost principle is a closing curtain or decision that is established by relating it to what must be give up or the beside best alternating(a) as a result of the conclusion or decision. both decision or judgment that engrosses a choice amongst two or more alternatives has an opportunity cost (O?Sullivan & antiophthalmic cistron; Sheffrin, 2006). Businesses have to make these types of decisions all(prenominal) daytime. Phil and Francis are two principal(prenominal) fiscal planners at a fiscal planning business. Phil and Francis are both very hard operative employees. As their manager, my delegation forget be to use the statistics I have been provided and pop off a decision that give conclude whether or not it will be more beneficial for these planners to be self-esteem sufficient or specialize. The statistics sight that Phil, in one hour, arse produce any 1 pecuniary statement or answer 8 send for calls. In contrast, Francis can either produce 2 financial statements or answer 10 head call back calls.

When I act these statistics into a work day that consists of 8 hours, Phil produces 64 telephone calls or 8 financial statements, and conversely Francis produces 80 phone calls and 16 financial statements. These statistics understandably show that Francis has the absolute reward when it comes to productivity and time by producing twice as some(prenominal) financial statements and answering twenty percent more phone calls than Phil in one hour. To remedy explain my decision I broke Phil?s and Francis?s opportunity cost... Opportunity Cost, As a manager of a financial planning business you have two financial planners, Phil and Francis If you essential to get a honest essay, order it on our website: Orderessay

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