Implicit Costs

question 293

Multiple Choice

Implicit costs

• A)do not require an outlay of money by the firm.
• B)do not enter into the economist's measurement of a firm's profit.
• C)are also known as variable costs.
• D)are not part of an economist's measurement of opportunity cost.

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Definitions:

Certified Public Accountant

A professional designation given to accountants who pass a standardized CPA exam and meet government-defined education and experience requirements.

Audit

A systematic examination or inspection of financial records, documents, or an entity's performance to ascertain accuracy and compliance.

Contract Law

A branch of legal studies that deals with agreements between parties, their rights, and obligations.

Five-Year Renewal

Typically refers to the option or requirement to renew a contract, license, or agreement for an additional five-year period.