Question

7.1 explicit and implicit costs and accounting and economic profit due wednesday by 11:59pm points 100 submitting an external tool current objective understand revenue, cost, and profits question a cost paid out of pocket is an ____ cost. select the correct answer below: direct explicit implicit accounting

Explanation:

Explicit costs are out - of - pocket expenses. They are direct payments made in the operation of a business such as paying for rent, wages, and materials. Implicit costs are opportunity costs and not out - of - pocket. Accounting costs mainly deal with explicit costs in financial records but the term 'accounting' is not the most specific for an out - of - pocket cost. Direct is a more general term and not as specific as explicit in this context.

Answer:

B. explicit