Accountants Consider Only Explicit Costs When Measuring Profit,whereas Economics Consider

question 34

Multiple Choice

Accountants consider only explicit costs when measuring profit,whereas economics consider both implicit and explicit costs.The reason that they ignore implicit costs is that:

• A) implicit costs are typically very small.
• B) explicit costs are always greater than implicit costs.
• C) implicit costs are not out-of-pocket expenses.
• D) implicit costs are tax deductible.
• E) implicit costs cannot be measured in terms of dollars.

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