Implicit Costs Are Costs That Do Not Require an Outlay

question 56

True/False

Implicit costs are costs that do not require an outlay of money by the firm.

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Definitions:

Option to Return

A contractual provision allowing a party to return a product or relinquish a service for reasons specified in the agreement.

Sale on Approval

A transaction agreement where the buyer has the right to return the item within a specified period if it does not meet their satisfaction.

Title

The formal right of ownership of property, which may include real estate or vehicles, among others.

Possession

The act of having physical control or ownership of an object or property.