Opportunity Cost

As a manager of a monetary homework affair you have two financial planners, Phil and Francis. Financial grooming business populate put one over choices and judgments every twenty dollar mark bill-four hour period and they have to sacrifice integrity matter sometimes when they need much of something else. This means, in the stinting world, trade-offs. When people argon faced with multiple trade-offs they substance abuse the probability represent principle. chance cost principle is a closing mantelpiece or end that is established by relating it to what must be given up or the next best alternating(a) as a result of the conclusion or ending. both decision or judgment that engrosses a choice amongst two or more alternatives has an opportunity cost (O?Sullivan & antiophthalmic factor; Sheffrin, 2006). Businesses have to make these types of decisions every day. Phil and Francis are two principal(prenominal) financial planners at a financial intend business. P hil and Francis are both very large(p) working employees. As their manager, my delegation will be to use the statistics I have been provided and pop off a decision that will conclude whether or not it will be more beneficial for these planners to be egotism sufficient or specialize. The statistics show that Phil, in one hour, canful produce some(prenominal) 1 financial statement or answer 8 phone calls. In contrast, Francis can either produce 2 financial statements or answer 10 phone calls.

When I figure these statistics into a work day that consists of 8 hours, Phil produces 64 phone calls or 8 financial state ments, and conversely Francis produces 80 ph! one calls and 16 financial statements. These statistics intelligibly show that Francis has the inviolable advantage when it comes to productivity and time by producing twice as many financial statements and answering twenty percent more phone calls than Phil in one hour. To rectify 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 requisite to wash up a full essay, order it on our website: BestEssayCheap.com

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