Accountants include ________ costs as part of a firm's costs, while economists include ________ costs.
A) explicit; no explicit
B) implicit; no implicit
C) explicit and implicit; implicit
D) explicit; explicit and implicit

Question

Quizplus · Accepted Answer

Accountants only include explicit costs such as wages and raw materials as part of the firm's costs, while economists include both explicit and implicit costs such as opportunity costs and the cost of the owner's time and energy. Therefore, the best choice is D, which includes explicit costs for both accountants and economists, but also includes implicit costs for economists.

Accountants Include ________ Costs as Part of a Firm's Costs