The Implicit Cost Incurred by a Firm to Use Its

question 380

Multiple Choice

The implicit cost incurred by a firm to use its resources to produce its output is the firm's

• A) total cost.
• B) explicit cost.
• C) opportunity cost.
• D) accounting cost.

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Definitions:

Petty Cash Account

A small amount of cash kept on hand to pay for minor or incidental expenses.

Fund Replenishing

The process of adding money to a fund to restore its level after expenses have been incurred.

Making Payments

This process involves the transfer of funds from one party to another to settle a financial obligation or purchase.

Cash Equivalents

Investments with a short duration, easily turned into cash, and having an original maturity of no longer than three months, which are both highly liquid and quickly convertible into precise cash sums.