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ss7ja [257]
3 years ago
14

Accountants use only _____ costs in their computations of short-run total cost.

Business
1 answer:
Anastaziya [24]3 years ago
3 0
Explicit costs

Explicit costs are those that are reflected by actual cash flows and are direct payments made to others when running a business. These include payments or costs associated with wage, rent, and materials. 

The short-run total cost includes both the variable and the fixed costs associated with the production. 

In calculating for accounting profit, only the explicit costs are considered. However, when calculating for economic profit, the implicit costs are also included in the calculations.  
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