Explicit Costs

question 34

Multiple Choice

Explicit costs:

• A) Include only payments to labor.
• B) Are the sum of actual monetary payments made for resources used to produce a good.
• C) Include the market value of all resources used to produce a good.
• D) Are the total value of resources used to produce a good but for which no monetary payment is actually made.

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Definitions:

Current Liabilities

Financial obligations of a company due within one year, including accounts payable, short-term loans, and other short-term debts.

Bonds Payable

Long-term liabilities representing borrowed money that a company is obliged to pay back with interest.

FICA Taxes

Federal Insurance Contributions Act taxes, which are payroll taxes in the United States used to fund Social Security and Medicare programs.

Payroll Deductions

Deductions from gross earnings to determine the amount of a paycheck.