Payments a business makes to acquire factors of production such as labor, raw materials, and machinery are:
A) explicit costs.
B) implicit costs.
C) depreciated costs.
D) nondiscretionary costs.

Question

Quizplus · Accepted Answer

Explicit costs are direct payments made by a business to acquire factors of production such as labor, raw materials, and machinery. These costs are easily identifiable and recorded in the financial statements.

Payments a Business Makes to Acquire Factors of Production Such