Accountants Consider Only Explicit Costs When Measuring Accounting Profit

question 51

Multiple Choice

Accountants consider only explicit costs when measuring accounting profit. The reason that they ignore implicit costs is that:

• A) implicit costs are typically very small.
• B) explicit costs are always greater than implicit costs.
• C) implicit costs are not out-of-pocket expenses.
• D) implicit costs are tax deductible.
• E) implicit costs cannot be measured in terms of dollars.

Know how to export the QuickBooks Audit Trail report to Excel for further analysis.

Understand how to create a budget in QuickBooks, including customization options.

Distinguish between the direct write-off method and the allowance method for accounting for bad debts.

Grasp how to prepare a bid for a potential customer using QuickBooks.

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