Which of the following would be considered an implicit cost of operating a business?
A)shipping expenses
B)Social Security contributions for employees
C)the resale value of delivery vans the company owns and uses for its deliveries
D)interest payments on a loan

Question

Quizplus · Accepted Answer

Implicit costs are those not directly paid out or incurred for operations, but represent opportunity costs. The resale value of delivery vans the company owns and uses for its deliveries is an implicit cost because it represents the foregone income from selling these assets, rather than their direct operational expense.

Which of the Following Would Be Considered an Implicit Cost