From the Manager's Perspective

Multiple Choice

From the manager's perspective:

A) it is important to treat implicit costs as explicit in order to make sound strategic decisions.
B) implicit costs are simply a theoretical construct and should be ignored in the decision-making process.
C) only explicit costs matter because accounting profit is based on explicit costs.
D) there is no difference between implicit and explicit costs. As such, treating implicit costs as explicit would result in double counting and an overstatement of total costs.