Find out (a) explicit cost, and (b) implicit cost from the following: In Lakhs (i) Investment in fixed assets 40 (ii) Borrowings at 12% interest per annum 30 (iii) Wages paid during the year 12 (iv) Annual rental value of the owner’s factory building 18 (v) Annual depreciation 10 (vi) The estimated annual value of the management services of the owner 24
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