Opportunity cost is a cost associated with a decision that includes both the explicit and implicit(or imputed) costs. The unique aspect of opportunity cost is that it also includes costs associated with making an alternate decision. The costs associated with an alternative are called implicit costs. The accounting cost of making a decision is called the explicit cost.
While explicit, or accounting, costs are fairly easy to calculate, implicit costs are not as easy. Measuring the cost of the best foregone alternative can be not as easy as anticipated. By reading this Wiki right now, you are paying an implicit cost of your next best alternative. This can and often will be different for everyone. For you, it may be that the next best alternative instead of reading this is watching television. For someone else, it may be surfing the internet.
IMPUTED COST
A cost that is represented by lost opportunity in the use of a company's own resources, excluding cash. These are intangible costs that are not easily accounted for. For example, the time and effort that an owner puts into the maintenance of the company|company rather than working on expansion.
