From the manager's perspective:
A)it is important to treat implicit costs as explicit in order to make sound strategic decisions.
B)implicit costs are simply a theoretical construct and should be ignored in the decision-making process.
C)only explicit costs matter because accounting profit is based on explicit costs.
D)there is no difference between implicit and explicit costs. As such, treating implicit costs as explicit would result in double counting and an overstatement of total costs.

Question

Quizplus · Accepted Answer

From the manager's perspective, it is important to treat implicit costs as explicit in order to make sound strategic decisions. Implicit costs are often overlooked but can have a significant impact on the decision-making process. By making implicit costs explicit, managers can have a more accurate understanding of the true cost of a decision and make informed decisions.

From the Manager's Perspective