Question

to an accountant, total cost includes

To an accountant, total cost includes Multiple Choice Ο neither implicit nor explicit costs. Ο implicit, but not explicit, costs. Ο explicit, but not implicit, costs. Ο explicit and implicit costs.

Answer 1

Answer. (c) explicit, but not implicit costs

Explanation: Explicit costs are expenses which a firm or individual pays in reality. Like wages to workers, bills for electricity, rent for office-space, etc. These costs are real money transactions and are taken for accounting purposes such as calculating profit. Implicit costs on the other hand represent foregone earnings basically. Examples can be foregone production activities, missed business deals, etc. But since they dont represent loss in profit, they are not taken for accounting purposes.