Which of the Following Are Implicit Costs for a Typical

question 23

Multiple Choice

Which of the following are implicit costs for a typical firm?

• A)the cost of labor
• B)the opportunity cost of capital owned and used by the firm
• C)the cost of energy used in production
• D)a business licensing fee

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Definitions:

Direct Labor Hour

A measure of the amount of time workers spend directly manufacturing a product.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services and are significant in cost.

Total Cost

The complete amount of costs involved in producing, purchasing, and/or selling goods or services, including fixed and variable costs.

Inventory Information

Details about the quantities, locations, and values of a company's inventory, used for managing and reporting purposes.