Which of the Following Are Implicit Costs for a Typical

question 7

Multiple Choice

Which of the following are implicit costs for a typical firm?

• A)opportunity costs of capital owned and used by the firm
• B)the cost of labor hired by the firm
• C)utilities cost
• D)a business licensing fee

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Definitions:

LIFO Retail Inventory Method

An accounting technique that values inventory on the assumption that the last items placed in inventory are sold first, specifically applied to retail settings.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Net Markups

The amount by which the price of a security is increased above its initial offering price to the public, after deducting any fees or commissions.

Net Markdowns

The reduction in the selling price of goods, net of any subsequent increases in price, affecting the gross margin of a retail operation.