girl 
slogan
logo
phones
live chat
Essay Editing
Essay Tips
Essay Writing Samples
Ideas for Essays
Plagiarism Free Essays
Writing Essays
Over 300 words/page
Double-spaced
Text aligned left
One-inch margins
12 point font size
You choose font face
bottom
chat
Reasons why to choose us
  • US registered company
  • Over 1500 certified writers
  • Any topic at any academic level
  • Up to date sources
  • Life time discounts
  • 100 000 prewritten essays & Plagiarism report as FREE Extras
  • Personal account
  • Direct communication with the writer
  • 24/7 Customer support
  • Delivery from 6 hours
accept people
 
 
← Transitional CareStates of Consciousness →
Live Chat

Explicit and Implicit Cost

Buy custom Explicit and Implicit Cost essay

Economic profit is explained by business opportunity cost. The opportunity cost is associated with the decision that includes both explicit and implicit costs. The unique aspect about opportunity it regards the cost associated with making alternative decision. The cost associated with an alternative are often refer implicit costs. The accounting cost of making a decision is called the explicit cost (McEachern, 2008).

While the accounting costs are fairly simple to calculate, implicit costs are not as easy. Measuring the cost of best foregone alternative can be easily anticipated. Considering the Amos McCoy invests in 100 acres earn $100, Amos McCoy has an alternative investment option, where Amos McCoy could earn $200 per acre. Based on economic principles in regard to implicit and explicit, it is evident that Amos McCoy currently makes no economic benefit.

In the first case, where Amos McCoy earns $100 from 100 acres represents a business expense, that can easily identified and accounted for as an explicit cost.  The cost incurred reflects clear, obvious outflows from a business that reduces its bottom-line profitability (McEachern, 2008). At the same time explicit cost contrast with less-tangible expenses such as goodwill amortization, which does not present a clear cut regarding their effects on business, in this case Amos McCoy investment.

In conclusion, it crucial to note that  McCoy’s business expenses that regard explicit costs such as wage expenses, land lease costs among other related cost involved in production in order for the investment to earn the $100 were not identified, this makes it difficult to know whether the business earn an economic profit. However, with the alternative information given, it is easy to identify the source of cash outflow and investment activities, thus, identifying the attribute related profit or loss.  McCoy’s farm investment can earn profits through the proposed option where, 1acre has the potential to earn McCoy $200. It is therefore, evident that McCoy’s current is not making an economic profit.    

Buy custom Explicit and Implicit Cost essay

Buy essayHesitating

Related essays

  1. States of Consciousness
  2. Asian American Community
  3. Transitional Care
  4. Communication Competency Analysis
get online helpBuy Essay
 
5.5K
1.4K
Email:
Password:
McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams
details
Time left: 4 days 19:44:26
Essay in 11+ days for $12.99/page
Essay in 7-10 days for $13.99/page
Essay in 4-6 days for $14.99/page
Essay in 3 days for $15.99/page
Essay in 48 hrs for $17.99/page
Essay in 24 hrs for $21.99/page
Essay in 12 hrs for $26.99/page
Essay in 6 hrs for $32.99/page
  more »  

"The paper you wrote for me really pays off... I do not have to rewrite it or hire another service to edit it. It is absolutely perfect"

more »  
Rekindling the Platonic Years Through Plato Essays
Writing Evaluation Essay
Writing a Nice French Essay
Writing a Narrative Essay
Putting up a Good Academic Essay
Writing an Algebra Essay
Writing a Good College Entrance Essay
Writing a Dental School Essay