There Are Numerous Ways to Label an Employee's Pay

question 107

Essay

There are numerous ways to label an employee's pay.Complete the table to show how each type of employee pay is generally labeled.

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for goods and services used in the production of a product or provision of a service.

Accounting Profit

The difference between total monetary revenue and total monetary costs, excluding the consideration of opportunity costs.

Explicit Costs

These are the direct, clear expenses related to business operations, such as salaries, utilities, and rent, that are easily quantifiable.

Accounting Profit

The difference between the total revenue and explicit costs of a firm, not accounting for implicit costs.