explicit cost

(redirected from Outlay Cost)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
He added: "People talk about petrol and I think we will find over the next six months big engine petrol cars will plummet in price." He said they have not seen any real interest in the need breed of electric cars because the initial outlay cost of pounds 20,000 plus is putting people off.
The fuel economy is excellent as is the initial outlay cost and for a family that cherishes the thrills of an outdoor lifestyle, it could be the perfect vehicle.
He noted the initial outlay cost for the LEDs was "marginally higher" than for fluorescents, but added: "[In the past] we'd send out engineers to re-lamp [the apron] on an annual basis...
And, much like PSG, they see the worldwide marketing appeal of the Brazilian as great enough to be able to make the potentially mammoth outlay cost effective.
However, many companies are still heavily influenced by the initial capital outlay cost of components and equipment, simply because they are more clearly defined.
Flight officer Stewart added that despite the initial outlay cost the investment would save military chiefs cash by reducing the training needed in the frontline fighters.
"I think their popularity stems for their financial benefits for households because although there is an initial outlay cost they really can save money while producing more heat than a normal open fire.
The study's third measure was the number of outlay costs included in participants' cash flow analyses, which ranged from zero to six.
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.
By single-sourcing their solution for development and maintenance project and portfolio management, facilities professionals can save on both the initial outlay costs for hardware, network, storage, and peripherals, as well as the dollars associated with operations and upgrades.
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.
This is expected to reduce the carrier's outlay costs for aircraft by around USD2.5bn during the two years.