Question 18 of 40
Q.Explicit Cost - Define.
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2022Subjective· 2mImportance★★★★★
45% · 18/40 Questions
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Start your 14-day free trial to unlock the full solution →Explicit cost is the actual money payment made by a firm to outside suppliers of inputs.
Explicit costs are the direct, out-of-pocket money payments that a firm makes to outsiders for the factors of production and other inputs it buys or hires from the market. Examples include wages and salaries paid to workers, rent for buildings, payment for raw materials, interest on borrowed capital, and electricity and fuel charges. These are recorded in the firm's accounts. They are distinguished from implicit costs, which are the estimated value of the fir …
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