All of the Following Would Be Considered Explicit Costs of Operating

question 140

Multiple Choice

All of the following would be considered explicit costs of operating a business except

• A)utility expenses.
• B)the cost of raw materials used in production.
• C)the rental value of equipment the company owns and uses for its own production.
• D)advertising expenses.

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Definitions:

Ethnic Stereotyping

The act of attributing oversimplified characteristics to members of a specific ethnic group.

Consumer Demand

The desire for specific goods or services that consumers are willing and able to purchase at given prices.

Goods And Services

Products and activities that fulfill consumer needs and wants, where goods are tangible items, and services are intangible experiences or tasks performed.

Discretionary Purchases

Expenditures on goods or services that are non-essential and made at the discretion of the consumer based on personal wants rather than needs.