There is almost an implicit assumption that tutors know about these things.
One classical example of implicit cost is the owner of a company putting his time and effort in maintaining the company rather than looking out for growth opportunities.
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
How do firms incorporate opportunity cost to calculate economic cost? discuss and give example using an explicit economic cost and an implicit economic cost.
Explicit cost and Implicit cost are the two dimensions of cost What role does cost play in financial decisions?
the opportunity cost or value of the best by a business
First of all, we need to understand what is explicit cost and implicit cost. Explicit cost mean real expenses, while implicit cost mean opportunity cost. In accounting profit, we only minus explicit cost, while in economic profit we minus explicit cost and implicit cost. therefore accounting profit is higher than economic profit.
"I saw Jhon go to the restaurant"
Implicit memory means that subconscious awareness of previous experiences assist you in the performance of tasks. An example of Implicit memory would be typing without looking at the keyboard.
Because opportunity cost doesn't show up as an accounting expense.
I would like to think that ethial behavior is implicit ,but find that most children must be clearly instructed in the rules of proper behavior.
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According to the "Bible" for accounting terminology, Barron's Dictionary of Accounting Terms, 5th Edition, they are the same. In fact, when you look up implicit cost, it refers you to imputed cost. This is the definition of imputed cost: "A cost that is implied but not reflected in the financial reports of the firm: also called implicit cost. Imputed costs consist of opportunity costs of time and capital that the manage has invested in producing the given quantity of production and the opportunity costs of making a particular choice among the alternatives being considered."