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 ?
Instead, I suggest exploiting the existence of the less ambiguous and controversial terms implicit cost and explicit cost.
Foreign currency loans have a visible, explicit cost, but also a hidden, uncertain cost component, and this is what triggers abusive clauses.
Any explicit cost of such services including remuneration of experts/advisors shall be borne by NIBP funded by UNDP.
Explicit Cost Dynamics: An Alternative to Activity-Based Costing.
The explicit cost of on-line transactions is very low, but the hidden cost can be kind of high,'' said Michael Murphy, publisher of the California Technology Stock Letter.
In the United States, the central bank currently provides this liquidity at no explicit cost.
We can point to examples in Oregon and Washington, where assisted suicide is legal of these implicit and explicit cost pressures.
This differs from the traditional commission model in which institutions pay a single "bundled" commission rate for a suite of services, including research and execution, but do so without the designation of an explicit cost for each service.
Big decisions typically are made on the basis that the treatment is 'medically necessary and appropriate,' but that concept is vague," says Zenios--and it does not include explicit cost considerations.
Recent changes to the federal securities laws mandated by The Sarbanes-Oxley Act have increased the implicit and explicit cost of providing information for reporting companies.
On the other hand, too many managers only consider certain explicit costs of unethical behavior, such as potential fines or legal actions.