An Implicit Cost Is Defined As

question 50

Multiple Choice

An implicit cost is defined as:

• A)the opportunity cost of using a resource that is not explicitly paid out by the firm.
• B)the difference between an input's explicit cost and its actual cost.
• C)the amount by which economic profit exceeds accounting profit.
• D)the amount by which the money spent on an input to production exceeds its opportunity cost.

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Definitions:

Logistics

The management of the flow of goods, services, and information between the point of origin and the point of consumption to meet customer requirements.

Sales Offices

Physical locations where sales transactions take place or where sales teams conduct their work, often acting as the point of contact for customers.

Inventories

Quantifiable collections of goods or materials that a business holds for the purpose of sale or production.