Because They Appear on Page 1 of Form 1040, Itemized

question 82

True/False

Because they appear on page 1 of Form 1040, itemized deductions are also referred to as "page 1 deductions."

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for inputs or resources employed in the production of goods or services.

Total Cost

The aggregate amount of expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Economic Profit

The variance between gross receipts and all outlays, including both tangible and intangible costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating, not including opportunity costs.