Asked by Gabriel Platero on Jul 24, 2024
Verified
Economists include both explicit and implicit costs while accountants include only implicit costs.
Explicit Costs
Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.
Implicit Costs
The opportunity costs of utilizing resources owned by the firm that could have been employed elsewhere, not directly paid out in cash.
- Distinguish between explicit and implicit costs, and understand their implications for economic and accounting profit.
Verified Answer
DJ
Daisy JuradoJul 26, 2024
Final Answer :
False
Explanation :
Economists include both explicit and implicit costs in their analysis, while accountants focus primarily on explicit costs.
Learning Objectives
- Distinguish between explicit and implicit costs, and understand their implications for economic and accounting profit.