Definition: (ITIL Service Strategy) A cost that is used in
deciding between investment choices.
Opportunity cost represents the revenue that
would have been generated by using the
resources in a different way. For example,
the opportunity cost of purchasing a new
server may include not carrying out a service
improvement activity that the money could
have been spent on. Opportunity cost
analysis is used as part of a decision-making
process, but opportunity cost is not treated as
an actual cost in any financial statement.