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:

Psychophysiological Judgment

A process of evaluating psychological phenomena through physiological responses.

Signal Detection Task

A psychological test that measures the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

Signal Detection Task

A psychological experiment that measures the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

False Alarm

An event in which a warning or alert is given, but the anticipated threat or danger does not actually occur.