Which of the Following Is an Implicit Cost

question 13

Multiple Choice

Which of the following is an implicit cost?

• A)salaries paid to owners who work for their own firm
• B)interest on money borrowed to finance equipment purchases
• C)cash payments for raw materials
• D)wages paid to hourly employees
• E)foregone interest on money taken from bank accounts to buy equipment

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Definitions:

Vertical Communication

The process of information flow in an organization between different levels of hierarchy, from top to bottom or bottom to top.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Scientific Study

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.

Human Factor

Refers to the psychological and physiological characteristics of humans, especially when considering their interaction with products, systems, or environments.