THE IMPORTANCE OF OPPORTUNITY COST IN THE BUSINESS ADMINISTRATION BASED ON THE CRESTION OS ECONOMIC VALUE (ECONOMIC VALEU ADDED - EVA)

Abstract

The present paper has as objective to present an abbreviation discussion concerning the concept of opportunity cost, as well as to detach the importance of considering his applicability in the business administration, with views to promote the development of better evaluation criteria of the patrimony and the result of the entities, through an appropriate mensuration of the economical events. Acting measures, based on the creation of value, they incorporate the concept of opportunity cost and they win prominence for his application simplicity and efficiency. Several companies are using EVA’S concept for several situations of decision, not only financial as well as estratégical. Verify, therefore, that the cost of opportunity of the shareholder’s equity ends up being an important parameter to be taken into account by taking of decisions, because itself reveals how the individual stops winning when rejecting investments of equivalent risks. As was verify, the cost of the shareholder’s equity is a growing function of the risk involved in an investment. As larger the degree of the involved risk, in other words, as larger the uncertainty, smaller the perspectives of wealth creation in an enterprise and, consequently, smaller the incentive in the application of resources in sections in that the return perspectives are low. Therefore the importance of efficient measures for the creation of value, that incorporate the concept of opportunity cost.