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7.1 Measuring Cost:Which Cost Matters? >Accounting cost-Actual expenses plus depreciation charges 折旧费)for capital equipment. >Economic cost-Cost to a firm of utilizing economic resources in production,including opportunity cost. >Opportunity cost-Cost()associated with opportunities that are forgone()when a firm's resources are not put to their highest-value use. Copyright by Caidonghong Copyright by Caidonghong 7.1 Measuring Cost: Which Cost Matters? ➢ Accounting cost-Actual expenses plus depreciation charges (折旧费) for capita1 equipment. ➢ Economic cost-Cost to a firm of utilizing economic resources in production, including opportunity cost. ➢ Opportunity cost—Cost(代价) associated with opportunities that are forgone(放弃) when a firm’s resources are not put to their highest-value use
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