________ Is Called an Implicit Cost, While ________ Is Called

question 155

Multiple Choice

________ is called an implicit cost, while ________ is called an explicit cost.

• A)An accounting cost; an economic cost
• B)A nonmonetary opportunity cost; a cost that involves spending money
• C)A production cost; a sales cost
• D)An actual cost; a hypothetical cost

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate at which an asset's book value depreciates compared to straight-line depreciation.

Salvage Value

The estimation of an asset's value at the end of its period of utility.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear or obsolescence of the asset.

Service Life

The expected period during which an asset is considered useful and productive in a business operation, also known as useful life.