Which of the following would be an example of an implicit cost? (i)
forgone investment opportunities
(ii)
wages of workers
(iii)
raw materials costs
Group of answer choices

(i) forgone investment opportunities

Explanation:

Implicit costs are the same as the opportunity costs of using a company's resources. There are the foregone benefits of not investing in project B but opting for project A.  Implicit costs are associated with the resources that a business already owns.

Implicit costs are used to calculate the economic value of a project.  They help managers assess how best to use the available resources. Wages of workers and raw materials costs represent explicit costs, which are direct materials of a project.

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