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.