The Reason Economists and Accountants Have Problems Using Cost Analysis

question 144

Multiple Choice

The reason economists and accountants have problems using cost analysis in the real world is that:

• A) economists do not believe in the existence of explicit costs.
• B) although implicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
• C) although explicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
• D) explicit costs cannot be measured.

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Definitions:

Striations

A series of lines, streaks, or stripes within a structure, often seen in muscle tissue or minerals.

Smooth Muscle

A type of muscle found in the walls of internal structures like the intestines, blood vessels, and uterus, characterized by its involuntary control and lack of visible striations.

Epithelial Tissue

Layers of cells that line or cover the surfaces, both inside and outside the body, serving protective, absorption, filtration, and sensation functions.

Cancerous

Cancerous refers to cells that are malignant and have the potential to invade tissue and spread to other parts of the body.