Implicit Costs

question 8

Multiple Choice

Implicit costs

• A)Include only payments to workers and lenders.
• B)Represent actual monetary payments made for resources used to produce a good such as oil.
• C)Are the value of resources used for which no direct payment is made.
• D)Are the total opportunity costs of resources and inputs used to produce a good.

---

Definitions:

Market Ratio

A financial ratio used to evaluate the performance, value, and profitability of a company within the marketplace.

Book Ratio

A financial ratio that compares a company's book value to some other indicator, often used in the context of a price-to-book ratio.

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a period.

Days' Sales

A financial ratio that measures how efficiently a company uses its inventory by calculating the average number of days the company takes to sell its inventory.