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 economic toll includes the implicit and explicit costs that insecurity and uncertainty generate.
This phenomenon presents readers with interesting aspects of gender roles in parenting, the implicit and explicit costs of childcare, and the societal norms associated with working mothers.
Explicit costs. Another advantage claimed for ETFs is that the explicit costthe annual expense ratiois generally less than for comparable mutual funds.
The explicit costs of a healthcare data breach can be detrimental, with recent offenses costing organizations millions of dollars in HIPAA f nes, but the soft costs can be even more devastating: a reduced trust from patients and a plummeting corporate reputation in the industry.
This is the classic example of the codependent relationship between consumers and financial institutions, in which consumers embrace a service with low explicit costs while paying potentially high implicit costs.
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.
"You have explicit costs -- a figure printed on the contract, usually somewhere between three and six basis points, plus taxes.
The overall results provide strong evidence for the causes and the consequences of the cost of capital in multinational contexts, implicit costs of capital, and explicit costs of capital.
Prior night's close was the next most common benchmark used (79%), followed by VWAP (volume weighted average price) at 64%, and explicit costs (50%).
When it comes to portfolio trading, there needs to be a more intelligent method of trade implementation other than purely focusing on reducing implicit and explicit costs. Portfolio-based algorithms are still in their infancy but are providing a good way to negotiate the majority of complexities discussed here.
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.