Tumbaga, Lejiff V

AC104

1. Accounting cost are only referred to explicit cost in which the money came from the owner pocket to
pay for the resources that need for production of products. While the economic cost it has the explicit
cost, accounting cost and also the implicit cost which is the cost of resources used in production with no
actual monetary payment like the labor, vehicle and equipment. Accounting cost is used to identify if
there is an increase or decrease on their profit. While the economic cost is used to know how to use
company's cash or resources in order to gain a bigger profit. It is used for a long-term strategic decision
making like they want to know what will be the total economic cost of the other options and what will
be the best option to increase their profit.

2. Fixed cost are not always a sunk cost. we all know that sunk cost is an expense that cannot be
recovered and some of the fixed costs are expenses that can be recovered. Example, if a certain
company has a fixed cost for the raw materials that needed in the production of final products. It could
recover the expense and earn a profit by simply selling those final products.

3. Last 2 years before the pandemic happened, I'm an athlete in our school and after the school year,
instead of spending my time on a vacation with my family, I went to a basketball court near to our house
and keep practicing and strengthen my weaknesses to be a better player. After that I awarded for most
valuable player (MVP) in malagasang II-A league but I lost the valuable time I should have with my family
on vacation. The opportunity cost is the time I would have had with my family on a vacation.