explicit cost

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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.

explicit cost

a payment made by a firm for the use of FACTOR INPUTS (labour, capital) not owned by the firm. Unlike IMPLICIT COSTS (which represent payments for the use of factor inputs owned by the firm itself), explicit costs involve the firm in purchasing inputs from outside FACTOR MARKETS.
References in periodicals archive ?
The explicit costs are: $50 for backpack; $50 for vest; $30 for dinner.
On the other hand, too many managers only consider certain explicit costs of unethical behavior, such as potential fines or legal actions.
The difficulty in calculating the potential losses of a foiled attack means that clients see the explicit costs and miss the implicit benefits of MSS.
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.
There are explicit costs of having to produce more reports and implicit costs of compelling management to focus far more attention on regulatory compliance.
The user cost for a financial service is the difference between the revenue it generates and the sum of its implicit and explicit costs.
Explicit costs, like brokerage commissions and taxes, frequently include payments unrelated to the actual buying and selling of securities, like payment for research and other services.
Although no one until Barro incorporated the idea into a formal model, economists discussed explicit costs of price adjustment as early as the 1930s.
The results show that for trades that were crossed, the average implicit and explicit costs were lower than those found in similar cases in the academic literature.