Explicit Costs Would Include

question 211

Multiple Choice

Explicit costs would include:

• A) rent.
• B) the interest loss of the business owner on money withdrawn from his/her saving account and invested in the business.
• C) the loss of rent on a building the business owner owns and uses in his/her business.
• D) the opportunity costs of the business owner's time.
• E) the use of tools owned by the business owner and dedicated to the business.

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Definitions:

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Future Value

The amount of money an investment is expected to grow to over a period at a specified rate of interest or return.

Interest Factors

Mathematical factors used to calculate the future or present value of cash flows based on an interest rate.