_____ are also called explicit costs.
A) Indirect costs
B) Outofpocket costs
C) Opportunity costs
D) Internal costs

Question

_____ are also called explicit costs.
A) Indirect costs
B) Out­of­pocket costs
C) Opportunity costs
D) Internal costs

Quizplus · Accepted Answer

Out-of-pocket costs refer to the actual expenses paid out by a company, such as wages, rent, and materials. These are also referred to as explicit costs. Indirect costs refer to expenses that are not directly tied to the production of a good or service, such as administrative or overhead expenses. Opportunity costs refer to the benefits foregone by choosing one alternative over another. Internal costs refer to costs incurred within a company or organization, such as training expenses or lost productivity due to poor employee morale.

_____ Are Also Called Explicit Costs