Which of the Following Would Be Considered an Implicit Cost

question 67

Multiple Choice

Which of the following would be considered an implicit cost?

• A) Health insurance of employees paid for by the firm
• B) The water bill of the firm
• C) The salaries paid to the managers of the firm
• D) Foregone rent on assets owned by the firm

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Definitions:

Topic Focused

Pertaining specifically to a defined subject or area of interest, concentrating efforts and discussions on a particular theme.

Parallel Forms Validity

The degree to which two different forms of a test measure the same attributes or content.

Measure

A method or tool used to assess, quantify, or determine the level or degree of a variable or attribute.

Validity

Validity refers to the extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.