Which of the following is an implicit cost to Mondo Manufacturing,Inc.?
A) Payments of wages to its office workers.
B) Property taxes.
C) Depreciation charges on company owned automobiles and trucks.
D) Rent paid for the use of equipment.

Question

Quizplus · Accepted Answer

Implicit costs are non-monetary opportunity costs. Depreciation charges represent the loss of value of owned assets, which is an implicit cost as it reflects the opportunity cost of using the assets rather than selling or leasing them.

Which of the Following Is an Implicit Cost to Mondo