All of the Following Are Examples of Explicit Cost a Firm

question 227

Multiple Choice

All of the following are examples of explicit cost a firm might incur except

• A)the out-of-pocket expense to hire employees.
• B)taxes owed to the state government.
• C)the rental value of the warehouse space the company owns and uses for itself.
• D)the revenue a firm generates in using its resources.

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Definitions:

Installment Note Payment

A portion of a loan's repayment structure, where payments are spread out over time, typically including both principal and interest components.

Carrying Amount

The net value of an asset or liability reported on the balance sheet, calculated as the original cost minus depreciation, amortization, or impairment costs.

Federal Unemployment Taxes

Taxes imposed by the federal government on employers to fund state workforce agencies and unemployment compensation for workers who have lost their jobs.

Federal Income Taxes

Taxes imposed by the government on the annual earnings of individuals, corporations, trusts, and other legal entities.