An Implicit Cost Is

question 116

Multiple Choice

An implicit cost is

• A)any cost a firm cannot avoid in the short run
• B)any expenditure a firm makes
• C)an opportunity cost
• D)accurately measured in accounting statements
• E)ignored by economists

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Definitions:

Turnover Quick

A measure reflecting the speed at which a company can convert its inventory or assets into sales or revenue, indicating operational efficiency.

Fixed Maturity Date

A specific date on which the principal (or face value) of a financial instrument is due to be repaid.

Financial Institution

A business that provides financial services such as loans, deposits, payments, and investment products to its customers.

Advances and Loans

Financial assistance provided by a lender to a borrower, where the amount is expected to be repaid with or without interest.