Explicit Cost and Implicit Cost
Accounting Profit Net Revenues Rent Expenses Electricity Charges Salaries Interest Expenses Paid Raw Material Cost. The implicit cost of a company is the opportunity cost of the company using the existing resources they own. Pin On Useful Things To Know An explicit cost is the clearly stated costs that a business incurs. . Together implicit and explicit costs are opportunity costs. Unlike explicit costs implicit costs are. It is easier to track explicit cost in the market whereas implicit cost is more. An implicit cost is any cost that has already occurred but is not necessarily shown or reported as a separate expense. Explicit costs are out-of-pocket costs for a firmfor example payments for wages and salaries rent or materials. Management will use both explicit and implicit costs to evaluate the total return that a company receives on all costs that are related to revenue. Implicit costs are the opportuni
