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A company's expenditure on raw materials is regarded as?

Economics
JAMB 2020

A company's expenditure on raw materials is regarded as?

  • A. explicit cost
  • B. implicit cost
  • C. prime cost
  • D. average cost
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Correct Answer: Option A
Explanation

Explicit costs are direct payments incurred by a firm in the course of running a business. These are costs actual and physical costs incurred by a firm. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other direct costs.


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WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts