Question

1. (TCO 3) Which of the following is most likely to be an implicit cost for Company X? (Points : 1)
Forgone rent from the building owned and used by Company X
Rental payments on IBM equipment
Payments for raw materials purchased from Company Y
Transportation costs paid to a nearby trucking firm

Answers

Ms. Sue
Read this. Then post your answer. I'll be glad to check it.

http://www.investopedia.com/terms/i/implicitcost.asp
Kaye
1 Forgone rent from the building owned and used by Company X
Ms. Sue
Correct.
sain
Suppose a company incurs the following costs: labor, $600;equipment, $200; and materials, $100.
The company owns the building, so it doesn't have to pa theusual $800 in rent.
a) What is the total accounting cost?
b)What is the total economic cost?
c)How would accounting and economic costs change if thecompany sold the build

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