Implicit Costs

question 79

Multiple Choice

Implicit costs:

• A)are always fixed.
• B)measure the forgone opportunities of the owners of the business.
• C)always exceed explicit costs.
• D)are irrelevant to business decisions.

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Definitions:

Specified Threshold

A predetermined level or point at which an action is triggered or a condition changes, often used in decision-making processes.

Supply Chain Manager

A professional responsible for overseeing and managing a company's supply chain and logistics strategy and operations.

Safety Inventory

Extra inventory held by a company to prevent stockouts caused by uncertainties in demand or supply, ensuring product availability.

Product Availability

The extent to which a product can be purchased or obtained when desired by a customer.