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  • Opportunity Cost and Actual Cost

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    Mandarun Naeem
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    Opportunity cost refers to income forgone due to scarce resources, while actual costs are expenses like wages and maintenance. Business costs are those to operate, like fees and depreciation, and full costs incorporate opportunity costs, business costs, and normal profit. Explicit costs involve cash payments for inputs, whereas implicit costs are non-cash opportunities lost.

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    Thesis on garbage

    Original Title

    GarbAGE

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    Opportunity cost refers to income forgone due to scarce resources, while actual costs are expenses like wages and maintenance. Business costs are those to operate, like fees and depreciation, and full costs incorporate opportunity costs, business costs, and normal profit. Explicit costs involve cash payments for inputs, whereas implicit costs are non-cash opportunities lost.

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    11 views1 page

    Opportunity Cost and Actual Cost

    Uploaded by

    Mandarun Naeem
    Opportunity cost refers to income forgone due to scarce resources, while actual costs are expenses like wages and maintenance. Business costs are those to operate, like fees and depreciation, and full costs incorporate opportunity costs, business costs, and normal profit. Explicit costs involve cash payments for inputs, whereas implicit costs are non-cash opportunities lost.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Opportunity cost and Actual cost

    Opportunity Cost is the cost incurred due to the income foregone due to
    scarcity of resources.

    Actual Cost are cost that the company has to bear in terms of labor wages,
    machinery maintenance, plant & building, …. etc.

    Business cost and Full cost

    Business cost is the cost incurred by company to carry out business e.g tender
    submission fee, depreciation of equipment, …. etc.

    Full cost includes opportunity cost, business cost and normal profit.

    Explicit and Implicit Cost

    Explicit Cost is the actual payment made by a firm for use of an input owned
    or controlled by others e.g purchase of raw materials.

    Implicit Cost are cost opportunities foregone that do not involve cash
    involvement.

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