An Example of Implicit Costs Is The

question 40

Multiple Choice

An example of implicit costs is the:

• A) bad-debt liabilities arising out of excessive sales on credit.
• B) wages paid to the owners' children.
• C) opportunity cost of owner-supplied capital and labor that is not recognized by accountants.
• D) prices paid for purchased inputs.
• E) the alternative uses for money that could be borrowed.

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Definitions:

Performance Management

The process of ensuring employees' activities and outputs meet an organization's goals through methods such as goal setting, feedback, and evaluations.

HR Activities

Tasks and initiatives undertaken by the Human Resources department to manage and support an organization's workforce.

Internal Environment

The internal and external influences, including conditions, entities, events, and factors, that impact the actions and decisions of an organization.

Instrumentality

A theory that people will be motivated to perform if they believe that their efforts will lead to good performance and ultimately, to desired rewards.