Opportunity cost refers to the cost of the next best alternative forgone when making a decision. It is the value of the benefit that is foregone in order to pursue a certain course of action.

Explanation:
Opportunity cost is a crucial concept in economics and decision-making. It is an important factor to consider when making decisions because it helps individuals and businesses understand the true cost of their choices.

For example, if a business has to choose between investing in new equipment or expanding its marketing efforts, the opportunity cost of choosing one option over the other is the value of the benefits that would have been gained from the alternative option.

Opportunity cost is not a direct cost, total cost or accounting cost, but rather a concept that helps to measure the true cost of a decision. It is important to consider opportunity cost when making decisions because it helps individuals and businesses make more informed choices.

In summary, opportunity cost is the cost of foregone opportunity, which is the value of the benefits that are lost when choosing one option over another. It is an important concept in economics and decision-making, and helps individuals and businesses make more informed choices.

To avail the next better alternative forgone or sacrifice cost.