Question

A firm’s accounting cost, defined as actual cash payments for inputs equals:Group of answer choicesthe firm’s implicit cost.the firm’s explicit cost.the firm’s economic cost.the sum of the costs listed above.

Answer 1

Answer:

the firm’s economic cost

Explanation:

The accounting cost of the firm are considered as an explicit cost where the cost is to be incurred for running the business like production cost, lease payment, etc

Also it refers to the actual payment made in cash for the inputs i.e. equivalent to the economic cost of the firm

Hence the second last option is correct