An important implicit cost of almost every business is the:
A)cost of accounting services
B)cost of compliance with government regulation
C)opportunity cost of financial capital that has been invested in the business
D)cost of debt

Question

Quizplus · Accepted Answer

The opportunity cost of financial capital that has been invested in the business is an important implicit cost because it represents the potential earnings from the next best alternative use of that capital, which is not directly outlaid but still represents a cost to the business in terms of foregone opportunities.

An Important Implicit Cost of Almost Every Business Is The