Implicit Cost Refers To

question 149

Multiple Choice

Implicit cost refers to:

• A) the amount a firm receives for selling its product or service.
• B) any increase in the value of the assets owned by the firm.
• C) the opportunity cost of factors of production provided by the owners of the firm.
• D) salary paid to the factors of production.

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Definitions:

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available.

U.S. GAAP

United States Generally Accepted Accounting Principles, a set of rules and guidelines meant to ensure financial reporting consistency and transparency.

Geographic Segment

A part of a business that operates in a specific geographical area that is significant enough to require separate financial reporting.

U.S. GAAP

Short for United States Generally Accepted Accounting Principles, it represents the framework and specific rules for financial accounting and reporting in the U.S.