Implicit costs
A) are always fixed.
B) appear in the calculation of accounting profit.
C) measure the forgone opportunities of the owners of the business.
D) always exceed explicit costs.
E) are irrelevant to business decisions.

Question

Quizplus · Accepted Answer

Implicit costs represent the opportunity costs of using resources owned by the business, such as the owner's time or capital, which could have been used elsewhere.

Implicit Costs