Final answer:
The claim regarding general and administrative costs being attributable to specific WBS activities is false. General and administrative costs are fixed costs, not directly connected to specific activities within the WBS. Both explicit and implicit costs are relevant when calculating a business's total expenses.
Step-by-step explanation:
The statement that general and administrative costs can be attributed to specific work activities identified in the Work Breakdown Structure (WBS) such as labor, materials, supplies, and equipment is False. General and administrative costs are typically considered fixed costs, which are the costs of fixed inputs, like rent on a factory, that do not change with the level of production. These costs are considered overhead and are not directly attributable to specific items within the WBS.
Explicit costs and implicit costs are also important to understand. Explicit costs are actual out-of-pocket payments, such as wages paid to employees or rent for office space. Implicit costs are the opportunity costs of using resources the firm already owns, like a business owner's time or the use of a personal property for business purposes. Both types of costs must be considered when assessing the overall expenses of a business.