Ace the CBAP Exam 2026 – Unleash Your Business Analysis Superpowers!

The opportunity cost is fundamentally about the potential gains that are foregone when one option is chosen over another. In this context, when determining the opportunity cost of selecting one solution over another, the value considered is the potential value of the unselected solution. This reflects the benefits or returns that would have been realized had that alternative been chosen instead.

Understanding opportunity cost is crucial in strategic planning and decision-making within business analysis. It helps stakeholders make informed choices by considering not only the costs associated with the selected solution but also the gains that would be missed from the alternatives. This concept emphasizes that every choice comes with trade-offs, and assessing the potential value of the unselected option allows for a more comprehensive evaluation of the decision at hand. Thus, analyzing the unselected solution's value is key to understanding the true cost of the decision.