- In short
- Reversal cost is usually the element that changes a stakeholder's decision. A stakeholder can approve an accurate per-unit number, such as a cost per call, without understanding what it becomes at production volume, and an accurate answer to the literal question asked is not the same as answering the question the stakeholder actually needed answered. A sponsor who approves a direction without the reversal-cost element has not made a fully informed choice, even when every fact presented was correct.
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