To the Economist, Total Cost Includes

question 411

Multiple Choice

To the economist, total cost includes

• A)explicit and implicit costs.
• B)neither implicit nor explicit costs.
• C)implicit, but not explicit, costs.
• D)explicit, but not implicit, costs.

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Definitions:

Recent Costs

refer to the latest expenses incurred by a company, highlighting the most up-to-date financial outlays for operations or projects.

Current Revenues

Earnings generated from the normal operations of a company within a specific time period.

Lower-of-cost-or-market

An accounting principle that valuables inventory at the lower of its historical cost or the current market price, ensuring assets are not overstated.

Item-by-Item Basis

An approach where items are considered, evaluated, or handled separately, rather than in aggregate or as part of a larger group.