Cash payments for steel to be used in production would be an example of

Question

Quizplus · Accepted Answer

Cash payments for steel would be considered explicit costs, as they are direct and measurable expenses incurred by the firm in order to carry out its production activities. Sunk costs refer to past expenses that cannot be recovered, fixed costs are costs that do not vary with changes in production level, implicit costs are opportunity costs associated with using resources for one purpose instead of another, and entrepreneurial costs refer to the costs incurred by an entrepreneur in starting and running a business.

Cash Payments for Steel to Be Used in Production Would