Suppose a firm has the following expenditures per day: $240 for wages,$150 for materials,and $80 for equipment rental.The owner of the firm owns the building in which it operates.If the firm were not operating in the building,he could rent the building for $70 per day.Total daily revenue is $600.
-What are the daily accounting costs for the firm described above?

Question

Quizplus · Accepted Answer

Accounting costs include explicit costs only, which are wages, materials, and equipment rental: $240 + $150 + $80 = $470. The opportunity cost of the building is not included in accounting costs.

Suppose a Firm Has the Following Expenditures Per Day: $240