Which of the following statements is true?

Question

Quizplus · Accepted Answer

Implicit costs, such as the opportunity cost of using resources for one activity rather than another, do not appear in accounting profits but can have a significant impact on managerial decisions. These costs must be considered when making decisions about resource allocation. Option A is incorrect as economic profits do take into account implicit costs and revenues. Option C is incorrect as explicit costs are already included in accounting profits. Option D is incorrect as sunk costs are not considered in decision making as they are already incurred and cannot be recovered.

Which of the Following Statements Is True