Accountants use only _______ costs in their computations of short-run total cost.

Question

Quizplus · Accepted Answer

Accountants use only explicit costs in their computations of short-run total cost. Explicit costs are the actual out-of-pocket expenses, such as salaries, rent, utilities, and supplies, that a company incurs in the production process. Opportunity costs, implicit costs, and variable costs may also be considered in long-term decision making, but in short-run cost analysis, accountants focus only on explicit costs.

Accountants Use Only _______ Costs in Their Computations of Short-Run