An Explicit Cost Is

question 207

Multiple Choice

An explicit cost is

• A)omitted when accounting profits are calculated.
• B)a money payment made for resources not owned by the firm itself.
• C)an implicit cost to the resource owner who receives that payment.
• D)always in excess of a resource's opportunity cost.

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Definitions:

Fee Simple Absolute

The most complete form of property ownership, giving the owner unrestricted rights to the property, including selling, leasing, or bequeathing.

Conditional Estate

A type of property ownership that is subject to certain conditions or event occurrences; failure to meet these may result in forfeiture of the property.

Fee Simple Absolute

The most complete ownership of land possible, with unconditional and permanent property rights.

Life Estate

A property interest that lasts for the lifetime of an individual, after which the property passes to another designated party.