54.6k views
0 votes
What are the two readily apparent costs of inventory

1 Answer

2 votes

Final answer:

The two apparent costs of inventory are explicit costs like wages and rent, and implicit costs, which include opportunity costs and depreciation of resources.

Step-by-step explanation:

The two readily apparent costs of inventory are explicit costs and implicit costs. Explicit costs are the actual out-of-pocket payments, such as wages paid to employees or rent for office space. Implicit costs, on the other hand, represent the opportunity cost of using resources the firm already owns, like using a part of the home as a store, and include the depreciation of goods, materials, and equipment necessary for the company to operate.

User Bill Seven
by
7.9k points