5 of 20 Incorrect Incorrect Incorrect pling Learning Map Widgets R Us uses a var

Question

5 of 20 Incorrect Incorrect Incorrect pling Learning Map Widgets R Us uses a variety of different items to produce their world-class widgets. For each item listed t or explicit cost for the firm. Explicit Cost Implicit Cost Production line workers. Warehouses rented to store inventory. Trucks owned outright by Widgets R Us. The purchase of a used car.Plastic molds for widgets produced by another company The difference between the owner/entrepreneur's profits and what s/he could have earned working for someone else.ll water from the water utility. Costs associated with fixing widgets under warranty

Explanation / Answer

Explicit cost are cost which are incurred by the organisation during the production but implicit costs are not incurred but are implied in nature and does not nvolve any cash payment. Explicit costs are also called out of pocket costs and implicit costs are also called as opportunity cost.

Explicit cost

Production line workers

Warehouses rented to store inventory

The purchase of a used car

Plastic folds for widgets producers by another company

Implicit cost

Trucks owned outright by Widgets R Us

Water from the water utility

Costs associated with fixing widgets under warranty

The difference between the owner/entrepreneur’s profits and what s/he could have earned working for someone else

Explicit cost

Production line workers

Warehouses rented to store inventory

The purchase of a used car

Plastic folds for widgets producers by another company

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