Question 15 of 40
Q.What is implicit and explicit cost ?
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2020Subjective· 2mImportance★★★★★
38% · 15/40 Questions
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Start your 14-day free trial to unlock the full solution →Explicit cost = actual money payments to outsiders; implicit cost = imputed cost of the firm's own (self-owned) factors.
Explicit cost:
Explicit costs are the direct, out-of-pocket money payments made by a firm to outside parties for the factors of production and inputs it hires or buys, such as wages to workers, rent for premises, payments for raw materials, electricity charges and interest on borrowed capital. They are recorded in the firm's accounts.
Implicit cost: …
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