what is an opportunity cost 
it s the cost to an individual or company of not pursuing a particular business option the cost isn t related to something they spend it refers to money they forego the bottom lineeconomic profit represents a company s revenue less its explicit costs as well as its opportunity costs it s used for internal analysis accounting profit net income is a company s revenue less its direct indirect and capital costs it s reported on financial statements and to the irs economic profit is important for the insight that it can give the management of a company about potential or past business opportunities accounting profit is an important measure of profitability and management capability for investors 