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What are Implicit Costs?

10. What are Implicit Costs?

1. The excess of estimated future profit than the normal profit
2. The amount of consolidated net income of the Company for such Financial Year
3. The opportunity cost is equal to what a firm must give up in order
4. Normal business costs that appear in the general ledger

Answer: C) The opportunity cost is equal to what a firm must give up in order

Explanation:

An implicit expense is any expense that has effectively happened yet not shown or announced as a different cost. It addresses an open-door cost that emerges when an organization utilizes inner assets toward an undertaking with next to no express remuneration for the use of assets. This implies when an organization dispenses its assets, it generally renounces the capacity to bring in cash off the utilization of the assets somewhere else, so there's no trade of money. Set forth plainly, a certain expense comes from the utilization of a resource, rather than leasing or getting it.