An Example of an Opportunity Cost That Is Also an Implicit

question 11

Multiple Choice

An example of an opportunity cost that is also an implicit cost is

• A)a lease payment.
• B)the cost of raw materials.
• C)the value of the business owner's time.
• D)All of the above are correct.

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Definitions:

Refund Liability

An obligation recorded by a business to return funds to a customer for returned or unsatisfactory goods or services.

Deferred Revenue

Income received in advance for products or services which is recorded as a liability until it is earned.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue previously recognized.

Purchase Discount

A reduction in the purchase price, offered by the seller to the buyer, as an incentive for early payment.