How Are Conclusions Different from Recommendations

question 6

Multiple Choice

How are conclusions different from recommendations?

• A)Conclusions are derived from secondary research whereas recommendations are derived from primary research.
• B)Recommendations are considered valid statements while conclusions are not.
• C)Recommendations are broad, whereas conclusions are very narrow.
• D)Conclusions are descriptive statements generalizing the results, whereas recommendations are applications for strategic or tactical actions.
• E)Recommendations are internally generated while conclusions are externally generated.

---

Definitions:

Implicit Costs

The opportunity costs of using resources that a company already owns, not directly paid for with cash.

Accounting Profit

The total revenue of a business minus the explicit costs, representing the financial gain in accounting terms.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the additional return over the investor's opportunity cost.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.