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:

Chemical Formula

A chemical formula is a way of presenting information about the chemical proportions of atoms that constitute a particular chemical compound or molecule.

Approximate Ph

An estimated measure of the acidity or alkalinity of a solution, typically on a scale of 0 to 14.

Ammonia

Ammonia is a compound of nitrogen and hydrogen that is a crucial intermediary in the nitrogen cycle, and is used in various biological and industrial processes.

Orbital Hybridization

A rearrangement of the orbitals in the valence shell that may occur when an atom forms covalent bonds with other atoms.