Which of the Following Are Included in Calculating Economic Costs

question 210

Multiple Choice

Which of the following are included in calculating economic costs?

• A) implicit costs
• B) explicit costs
• C) accounting costs
• D) All of the above are correct.

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Definitions:

Unearned Service Revenue

Income received by a company for services yet to be performed; considered a liability until the service is delivered.

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Operating Cash Outflow

Cash expenditures during a specific period related to operational activities, including paying for goods, services, and employee wages.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.