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 ?
What is the tax basis of whole life policies which do not have explicit cost of insurance charges?
Unlike universal life, whole life policies work differently and there are no explicit cost of insurance charges for whole life.
The reason is that the learning by doing element of renewable energy production lowers the shadow price (or full cost) of renewable energy, making it worthwhile to transition before the explicit cost of fossil energy reaches the initial explicit cost of renewable energy.
Instead, I suggest exploiting the existence of the less ambiguous and controversial terms implicit cost and explicit cost. These terms tend to be buried in later chapters on producer theory and firm costs.
On the fourth day, the Afghan trucking company charges the military demurrage, an explicit cost that compensates trucking companies for the additional time they spent waiting instead of moving other cargo.
420) categorize the bid-ask spread as an explicit cost and Huang (2013, p.
Foreign currency loans have a visible, explicit cost, but also a hidden, uncertain cost component, and this is what triggers abusive clauses.
"An MEP that files one 5500 only needs one audit." The cost savings related to the audit "is not just the explicit cost of paying the auditor, but somebody inside the company has to take time out of his or her schedule to work with the auditor," Power says.
Porras states that the explicit cost of capital is the rate of return of the cash flows generated by the financing opportunity (the equity cost is the cost of opportunity).
But a tradeoff must be faced; in this case, the attainment of flexibility comes at a higher cost--the explicit cost of hedging, issuing equity or becoming larger.
Any explicit cost of such services including remuneration of experts/advisors shall be borne by NIBP funded by UNDP.
The printed sources of the past are increasingly becoming available, oftentimes instantaneously and without explicit cost, as digital resources.