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 ?
IRBP informed the FDA that due to significant manufacturing outlay costs of strategic partners the Remune HIV/AIDS vaccine will likely exceed north of $30k per injection for adults in combination use of HAART drugs.
Wordsworth said: "Flexibility of tenure together with minimal outlay costs for fitting out the office are a good proposition for new business start-ups or companies with a limited history of trading.
Buying products based on television technology may save your initial outlay costs, but total-Life costs are going to be much higher.
10) This relevant information will likely include items such as opportunity costs and outlay costs.
The measure would force fee cutbacks through such means as the reevaluation of NTT's expected service life of the fiber-optic network and the capital outlay costs NTT incurred in creating the optical network.
Ms Slocock said the EOC was lobbying Government to provide greater support for flexible working, such as grants to small business to cover outlay costs.
Table 1: WEIGHTING CASH FLOWS YEAR DESCRIPTION Year 1 Best estimate $1,000 Possible alternatives A 20% $800 $160 B 50% 1,000 500 C 30% 1,200 360 Weighted average $1,020 YEAR DESCRIPTION Year 2 Best estimate $1,000 Possible alternatives A 30% $800 $240 B 50% 1,000 500 C 20% 1,200 240 Weighted average $980 YEAR DESCRIPTION Year 3 Best estimate $1,000 Possible alternatives A 20% $500 $100 B 50% 1,000 500 C 30% 1,500 450 Weighted average $1,050 Table 2: WEIGHTED CASH FLOW ESTIMATES FOR ACQUIRING AN ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM WORST BEST CASE CASE WEIGHT WEIGHT INITIAL OUTLAY COSTS Hardware $2,000,000 1.
This is expected to reduce the carrier's outlay costs for aircraft by around USD2.
In fiscal 2005, the city reported a large deficit of $630,000 due to capital outlay costs totaling $624,000.
Since its launch, it has been a major success with over 11,300 homeowners throughout Northern Ireland replacing their inefficient boiler and reducing their fuel outlay costs.
Flexibility of tenure, together with minimal outlay costs for fitting out the office, make this a good proposition for new business start ups or companies with a limited history of trading.
The initial outlay costs, which are still high, and the consequently long amortization periods represent challenges for solar air conditioning; but they are challenges which can be met.