Question: What are the items that make opportunity cost differ from the accountant's measure of cost ? Question content area bottom Part 1 A firm's opportunity
What are the items that make opportunity cost differ from the accountant's measure of cost
Question content area bottom
Part
A firm's opportunity cost includes
A
the cost of using resources bought in the market, owned by the firm, and supplied by the firm's owner
B
the cost of using resources supplied by the firm's owner only
C
the cost of using resources bought in the market and owned by the firm only
D
only costs that are paid in cash or by cheque
Part
Consider how the following, which are part of a firm's opportunity cost are treated by accountants.
Economic depreciationEconomicdepreciation
in an accountant's measure of cost
Normal profitNormalprofit
in an accountant's measure of cost
A
is includedisincluded;
is includedisincluded
B
is not includedisnotincluded;
is not includedisnotincluded
C
is not includedisnotincluded;
is includedisincluded
D
is includedisincluded;
is not includedisnotincluded
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