Implicit Costs Can Be Difficult to Measure Because

question 136

Multiple Choice

Implicit costs can be difficult to measure because

• A) business owners cannot always observe them directly.
• B) they are not measured in dollars.
• C) they are always very expensive.
• D) they are always greater than explicit costs.
• E) they include expenses like taxes.

---

Definitions:

Revenue Recognition

The accounting principle that dictates the specific conditions under which income becomes recognized as revenue and is reported in the financial statements.

Accounting Records

Documentation and books that contain the financial transactions and financial status of a company.

Services Rendered

Work or duties performed for a client, often resulting in payment for the service provider.

Incurred

Costs or expenses that have been realized or experienced by a business as part of its operations.