1. (TCO 3) Which of the following is most likely to be an implicit cost for Company X? (Points : 1)

Forgone rent from the building owned and used by Company X
Rental payments on IBM equipment
Payments for raw materials purchased from Company Y
Transportation costs paid to a nearby trucking firm

1 Forgone rent from the building owned and used by Company X

Read this. Then post your answer. I'll be glad to check it.

http://www.investopedia.com/terms/i/implicitcost.asp

Correct.

Suppose a company incurs the following costs: labor, $600;equipment, $200; and materials, $100.

The company owns the building, so it doesn't have to pa theusual $800 in rent.
a) What is the total accounting cost?
b)What is the total economic cost?
c)How would accounting and economic costs change if thecompany sold the build

To determine the implicit cost for Company X, we need to understand what implicit cost means. Implicit costs refer to the opportunity costs of using resources in a certain way, or the value of what a company gives up by not using its resources in their next-best alternative use.

In this case, the options provided are:
1. Forgone rent from the building owned and used by Company X
2. Rental payments on IBM equipment
3. Payments for raw materials purchased from Company Y
4. Transportation costs paid to a nearby trucking firm

Among these options, the one that is most likely to be an implicit cost for Company X is the "forgone rent from the building owned and used by Company X." This is because Company X owns the building and uses it for its operations. By using the building for its own needs, Company X is giving up the opportunity to rent it out to other tenants and earn rental income. This foregone rental income represents the implicit cost.

To choose the correct answer, we need to consider the opportunity cost involved. Since Company X owns the building, it is forgoing potential rental income that could have been earned if the building was rented out to other tenants. This potential rental income is the implicit cost. Therefore, the correct answer is "forgone rent from the building owned and used by Company X."