Final answer:
Productivity losses caused by reduced employee morale represent an intangible cost, which is a type of expense that is not easily quantified but still affects an organization's bottom line.
Step-by-step explanation:
Productivity losses caused by reduced employee morale are an example of a intangible cost. These types of costs are often not easily quantified and may include aspects such as employee satisfaction, corporate image, or customer loyalty. As with the concept of implicit costs in economics, an intangible cost is a real expense that affects an organization's bottom line but does not have a clear or direct price tag, similar to how an individual values leisure time as an implicit cost when they decide to start their own business, investing more hours than they would at a corporate job.
An example of an indirect cost is when employees are sent on a retreat to build team spirit; the direct costs involve the materials and services used for the event. However, the opportunity cost of employees not doing other work during that time can also be considered an intangible cost as it can affect the productivity and morale of the employees in a way that's not direct or immediately apparent.