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Explicit Cost
(redirected from Explicit Costs)

   Also found in: Wikipedia 0.02 sec.
Explicit Cost
A direct expense that a business incurs in conducting an activity. Examples of explicit costs include salaries, wages, materials, etc. An explicit cost can be recurring, or it can be a one-off expense. Likewise, it can be predictable, like the rent, or it can vary from time to time, like the electric bill. Less commonly, an explicit cost is called an outlay cost. See also: Implicit cost.


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Focusing only on accounting or explicit costs and ignoring implicit or opportunity costs, Isla breaks even when it charges a price of $350 per customer to a minimum of 24 customers per month.
To do so successfully, they would need to use six major criteria when choosing an implementation strategy: explicit costs, implicit costs, liquidity, operational complexity, counterparty risk and regulatory constraints.
The author also discusses less explicit costs to society that can be difficult to calculate.
 
 
 
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