Accountants Consider Only Explicit Costs When Measuring Accounting Profit

question 51

Multiple Choice

Accountants consider only explicit costs when measuring accounting profit. The reason that they ignore implicit costs is that:

• A) implicit costs are typically very small.
• B) explicit costs are always greater than implicit costs.
• C) implicit costs are not out-of-pocket expenses.
• D) implicit costs are tax deductible.
• E) implicit costs cannot be measured in terms of dollars.

Understand the appropriate tone, structure, and timing for different types of business communication.

Recognize the significance of timeliness and specificity in appreciation and thank-you messages.

Identify the deductive and inductive sequence in organizing business messages.

Distinguish between persuasive and routine claims and their tone of communication.

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Definitions:

Federal Housing Administration

A U.S. government agency created in 1934 to improve housing standards and conditions, provide an adequate home financing system, and to stabilize the mortgage market.

Private Housing Market

The segment of the housing industry where ownership and rental of property is controlled by private individuals and companies, as opposed to public or government entities.

Loan Denial

The refusal by a financial institution to grant a loan based on various factors including the applicant's credit history, income, or discrimination.

Environmental Racism

Environmental Racism refers to the disproportionate impact of environmental hazards on marginalized racial minority communities due to discriminatory policies or neglect.