Which cost is estimated based on the alternative results that might have been achieved if...

The concept of opportunity cost is fundamental in economics and decision-making processes, which also applies to business analysis. Opportunity cost refers to the benefits that are foregone by choosing one alternative over another. In the context of business analysis, when resources are allocated to one design option, the opportunity cost is the value of the best alternative that is not chosen. This means that the opportunity cost is the cost of the next best alternative that could have been achieved with those resources.

The information aligns with the principles found in the Business Analysis Body of Knowledge (BABOK) Guide, which serves as a standard for the practice of business analysis and provides a framework for understanding the core knowledge areas, tasks, and techniques required for effective business analysis12.