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14 Cards in this Set
- Front
- Back
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Cost |
Gain and losses in money |
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Cost |
Time and resources of one course of action |
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Economic costs |
Forward looking costs |
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Economic costs |
In tune with future costs because they have major repercussions on potential profitability |
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Opportunity costs |
Costs that are incurred by not putting the resources to optimum use. |
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Decision-making process |
If the opportunity costs is measurable, it is included in the ... |
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Sunk Costs |
Not capitalized because they are irretrievable because they are already incurred. |
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Accounting costs |
Retrospective |
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Accounting costs |
Recognized costs when made and recorded |
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Opportunity costs |
The difference between economic and Accounting costs |
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Explicit costs |
Actual expenses of firm |
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Implicit costs |
Value if inputs being owned by the firm and used in its own production. |
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Short run |
Time horizon |
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Short-run |
To analyze, it is essential to fix the level of capital and study the changes in the quantity of labor hired. |
