The Reason Economists and Accountants Have Problems Using Cost Analysis

Multiple Choice

The reason economists and accountants have problems using cost analysis in the real world is that:

A) economists do not believe in the existence of explicit costs.
B) although implicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
C) although explicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
D) explicit costs cannot be measured.