Question

The rules of accounting generally require that​ ________ costs be used for purposes of keeping a​ company's financial records and for paying taxes. These costs are sometimes called​ ________ costs.

Answer 1

explicit, accounting

Step-by-step explanation:

Costs can be categorized into two kinds, explicit costs and implicit costs.

Implicit costs take into consideration those costs which are not actually incurred such as opportunity costs. Those costs represent a cost in economics but not in accounting.

Accounting is only concerned with journalising and recording of explicit costs which are the costs which are visible and which have been actually incurred.

Owing to this difference in recognition of costs, accounting and economic profits differ.

Explicit costs owing to this very reason are sometimes referred to as accounting costs.