Final answer:
In finance or economics, the cost of a decision is known as the opportunity cost, which accounts for the foregone benefits of the next best alternative when making a choice.
Step-by-step explanation:
When studying finance or economics, the cost of a decision is also known as the opportunity cost.
The concept of opportunity cost is rooted in the understanding that every choice has an alternative, and choosing one option means forgoing the next best alternative.
This cost is not limited to monetary values but can also include other factors such as time and effort.
For example, if you decide to spend your evening studying for a finance exam, the opportunity cost is the leisure activities you could have enjoyed during that time.