Examlex
Identify the letter of the choice that best matches the phrase or definition.
-Joins a cable to a port
Economic Costs
The total cost of choosing one action over another, including both explicit costs and opportunity costs.
Accounting Costs
Costs that are recognized in the financial statements and involve actual cash flow, such as salaries, rent, and materials.
Implicit Costs
Costs that are not directly paid out or incurred in money but represent the opportunity cost of using resources owned by the firm for its own production instead of renting them out or selling.
Explicit Costs
Direct, out-of-pocket payments made by a business for resources and services used in production.
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