Implicit Costs Can Be Defined as

question 100

Multiple Choice

Implicit costs can be defined as

• A)accounting profit minus explicit cost.
• B)the non-monetary opportunity cost of using the firm's own resources.
• C)the deferred cost of production.
• D)total cost minus fixed costs.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.

Weighted-Average Method

A technique used in various contexts, such as inventory valuation and cost accounting, that calculates an average taking into account the proportionate importance of each component.

Equivalent Units

A concept in cost accounting used to allocate production costs between completed and partially completed goods.

FIFO Method

First-In, First-Out method, an inventory valuation technique where goods first added to inventory are assumed to be the first ones sold.