Give an example of an implicit cost, and explain why (or why not) the cost needs to be considered. Provide an example of an implicit cost (this is closely related to opportunity cost). 200 word minimu Describe the difference between explicit and implicit ...
Answer to: Explain the difference between implicit and explicit costs. Give two examples of when an explicit cost is different from an implicit...
A business firm, Xane Ltd, has revenues of $100,000 and explicit costs of $70,000. The implicit cost of the business is $20,000. Calculate the economical profit of the firm. Given: Solution: As per the formula, Economic profit = Revenues – Implicit Costs – Explicit Costs = $100,00...
Opportunity cost is usually defined in terms of money, but it may also be considered in terms of time, person-hours, mechanical output, or any other finite, limited resource. Although opportunity costs are not generally considered by accountants—financial statements only include explicit costs, or...
Learn the implicit cost definition and compare implicit cost vs. explicit cost. Study implicit cost examples and how the two types of implicit...
Accounting profitis most referred to as net income. Accounting profit is seen most commonly on income statements. It is simply revenue less explicit costs. Explicit costs are the recognized costs incurred by the firm. The most common explicit costs are items such as the cost of goods sold, re...
aBased on the textbook and class lecture: (a) Explain the concepts of opportunity cost, implicit cost and explicit cost, and come up with your own examples of these costs [suppose you did something, what was your opportunity cost, what was your explicit cost, what was your implicit cost];...
Rationale: Explain the reasons for doing the particular AD. This can include the context (see below), pros and cons of various potential choices, feature comparisons, cost/benefit discussions, and more. Specific: Each ADR should be about one AD, not multiple ADs. ...
Explicit costs are normal business costs that appear in a company’sgeneral ledgerand directly affect its profitability. They have clearly defined dollar amounts that flow through to theincome statement. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other dir...
Explicit costs are specific costs of a business that are normal in the course of operations and are directly linked to a firm's profitability. Examples include wages, utilities, advertising, raw materials, and rent. Is Labor an Implicit Cost?