Which of the following is an example of an implicit cost a firm might incur?

Question

Quizplus · Accepted Answer

An implicit cost is a cost that is not reflected in accounting records, such as the opportunity cost of using a resource in one way rather than another. The rental value of office space is an example of an implicit cost because it is the opportunity cost of using that space for the firm's own needs, rather than renting it out to another party.

Option A is incorrect because it mentions out-of-pocket expenses, which are explicit costs. 
Option B is incorrect because it refers to taxes, which are payments made to the government and not an opportunity cost. 
Option D is incorrect because it refers to revenue, which is a measure of the firm's income and not a cost.

Which of the Following Is an Example of an Implicit