Economic Costs Include Implicit Costs but Not Explicit Costs

question 49

True/False

Economic costs include implicit costs but not explicit costs.

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Definitions:

Revenue

Income arising in the course of an entity’s ordinary activities.

Entity Wide Basis

An approach to financial reporting that presents the aggregate information of all segments and activities of an entity.

External Revenue

The income that a company generates from its primary business activities outside of its entity, excluding internal transactions.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand, and customer service.