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What is the function of UCPI?
Implicit Costs
The opportunity costs of using resources owned by the company for its own operations, rather than earning income elsewhere.
Explicit Costs
Direct payments made to others in the course of running a business, such as wages, rent, and materials.
Implicit Costs
Costs that represent foregone opportunities, such as the income a business owner forgoes by investing in their own company instead of elsewhere.
Explicit Costs
Directly incurred expenses in the operation of a business, such as wages, rent, and material costs, which are clearly accounted for and easy to identify.
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