Accountants Consider Only Explicit Costs When Measuring Accounting Profit

question 95

Multiple Choice

Accountants consider only explicit costs when measuring accounting profit.The reason they ignore implicit costs is that

• A) implicit costs are typically very small.
• B) explicit costs are always greater than implicit costs.
• C) implicit costs are not out-of-pocket expenses.
• D) implicit costs are tax deductible.
• E) implicit costs cannot be measured in terms of dollars.

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Definitions:

Siphons Sugars

The process by which some organisms, such as certain insects with specialized mouthparts, extract sugary fluids from plants.

Infects Trees

A process by which pathogens such as bacteria, viruses, or fungi attack and cause disease in tree species.

Food Materials

Substances consumed to provide nutritional support for an organism, typically of plant or animal origin.

Intracellularly

Occurring or found within a cell.