(ITIL Service Strategy
) A cost
that is used in deciding between investment choices. Opportunity cost represents the revenue that would have been generated by using the resource
s in a different way. For example, the opportunity cost of purchasing a new server may include not carrying out a service improvement activity
that the money could have been spent on. Opportunity cost analysis is used as part of a decision-making process, but opportunity cost is not treated as an actual cost
in any financial statement.