A difference between explicit and implicit costs is that a. explicit costs must be greater than implicit costs. b. implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do. c. explicit costs do not require a direct monetary outlay by the firm, whereas implicit costs do. d. implicit costs must be greater than explicit costs.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)