The Most Important Implicit Cost Generally Omitted from the Accounting

question 125

Multiple Choice

The most important implicit cost generally omitted from the accounting statement of a firm is the

• A) rental cost of machinery.
• B) cost of compliance with government regulations.
• C) opportunity cost of the equity capital invested by the owners.
• D) accounting cost incurred as the result of tax compliance.

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Definitions:

Lincoln

The 16th President of the United States, Abraham Lincoln, who led the nation during the Civil War and is known for issuing the Emancipation Proclamation.

Pay for the War

Refers to the methods and strategies used by governments to finance military conflicts, often involving taxes, bonds, or borrowing.

Desertion

The act of abandoning a duty or post, especially in military service, without permission and with no intention of returning.

Union Army

The land force that fought for the Northern states during the American Civil War.