Which of the Following Is Not an Explicit Cost

question 145

Multiple Choice

Which of the following is not an explicit cost?

• A)salaries
• B)sales taxes
• C)the cost of utilities, such as gas and electricity
• D)insurance premiums
• E)the value of a firm owner's time

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Definitions:

Business Judgment

refers to the decision-making process by corporate directors and officers that is presumed to be in the best interest of the company, protecting them from liability if the decisions are made in good faith and with reasonable care.

Counteroffer

A proposal made in response to an offer, signaling rejection of the initial offer and suggesting a new agreement for negotiation.

Acceptance

The agreement to the terms of an offer, contract, or proposal, thereby creating a binding legal obligation.

Roof

The structure covering the top of a building, designed to protect against weather, animals, and other external factors.