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Basic Question 5 of 8
Which of the following does NOT represent a firm's explicit costs?
II. The amount paid by the firm for employee health benefits
III. The firm's total accounting costs
IV. The value of the CEO's time
V. The electricity bill
I. Costs related to workers salaries
II. The amount paid by the firm for employee health benefits
III. The firm's total accounting costs
IV. The value of the CEO's time
V. The electricity bill
User Contributed Comments 2
| User | Comment |
|---|---|
| sergashev | shouldn't he/she be owner with CEO role, if CEO is hired, firm does not have to consider CEO's personal opportunity cost ? |
| mordja | Fair observation sergashev. I think from the options though we can logically assume the CEO has an ownership interest as the others are quite obviously explicit. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.