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Implicit Cost
(redirected from Implicit Costs)

   Also found in: Wikipedia 0.01 sec.
Implicit Cost
The opportunity cost of an activity. Implicit costs are what a company or individual could have earned had a different decision been made. For example, suppose an independent consultant has two clients and she spends some time working on the first client's project. The implicit costs are what the consultant would have made had she worked on the second client's project instead. Implicit costs contrast with explicit costs, which are what someone actually spends on an activity. It is also called an indirect cost.


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0x20 "Delivering best-execution in transition management is a key part of managing our client's implicit costs.
Note that the above specification treats the implicit costs of borrowing as exogenously determined.
For the period June-December 2007, Isla incurred the following costs, divided into explicit and implicit costs (see Table 3): Among the implicit costs are the opportunity costs of using the business owners' savings of $16,000 to set up Isla, in this case, interest earnings at 5% per year.
 
 
 
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