Which of the Following Is an Example of an "Implicit

question 82

Multiple Choice

Which of the following is an example of an "implicit cost"?

• A)Interest that could have been earned on retained earnings used by the firm to finance expansion.
• B)The payment of rent by the firm for the building in which it is housed.
• C)The interest payment made by the firm for funds borrowed from a bank.
• D)The payment of wages by the firm.

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Definitions:

Design Phase

The stage in product development where specifications are determined, and detailed plans are laid out before the manufacturing process begins.

Supply Chain Strategy

The planning and management approach that determines how a supply chain's resources and capabilities can be best utilized to gain competitive advantage and meet business objectives.

Super Assembly Facility

A highly efficient production site designed for assembling large volumes of products with minimal delays and enhanced productivity.

Outbound Transportation Costs

Expenses related to the shipping of goods from a manufacturer or distributor to their final destination, typically a retailer or end customer.