Explicit Costs Are

question 69

Multiple Choice

Explicit costs are

• A) the opportunity costs of all resources used by the firm.
• B) the costs associated with the resources that the firm owns.
• C) actual expenditures that a firm must make.
• D) all costs associated with the short run.

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Definitions:

Service Department Expenses

Costs incurred by support departments within an organization, like HR and maintenance, which do not directly contribute to revenue but are necessary for operations.

Budget Performance Report

A financial report that compares actual financial results to the budgeted amounts for a specific period to assess performance.

Significant Variances

Large or meaningful differences between planned and actual figures in budgeting or accounting, requiring investigation.

Over Budget

Over budget refers to a situation where actual spending exceeds the planned or allocated amount for a particular budget category.