Asked by Kayla Harrington on Jun 23, 2024
Verified
Accountants use only _____ costs in their computations.
A) opportunity
B) implicit
C) explicit
D) variable
Explicit Costs
These are the direct, clear expenses related to business operations, such as salaries, utilities, and rent, that are easily quantifiable.
- Perceive the differentiation between explicit and implicit costs.
Verified Answer
RA
rania allabaniJun 24, 2024
Final Answer :
C
Explanation :
Accountants use explicit costs in their computations, which are the actual out-of-pocket expenses incurred by a firm, such as wages, rent, and materials. Opportunity costs and implicit costs are not included in these computations. Variable costs are a type of explicit cost that change with the level of production.
Learning Objectives
- Perceive the differentiation between explicit and implicit costs.