Asked by Isaac Rojas on May 28, 2024

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Accountants use only _____ costs in their computations of short-run total cost.

A) opportunity
B) implicit
C) explicit
D) variable

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business, such as wages, rent, and materials.

  • Differentiate between explicit and implicit costs in short-run total cost calculations.
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ZK
Zybrea KnightJun 01, 2024
Final Answer :
C
Explanation :
Accountants use only explicit costs in their computations of short-run total cost. Explicit costs are the direct, out-of-pocket expenses incurred by a firm in order to produce a good or service. They are easily quantifiable and can be traced directly to the production process.