A directexpensethat a business incurs in conducting anactivity. Examples of explicit costs includesalaries,wages, materials, etc. An explicit cost can be recurring, or it can be a one-off expense. Likewise, it can be predictable, like therent, or it can vary from time to time, like the...
the costs (EXPLICIT COSTS and IMPLICIT COSTS) incurred by firms for the use of FACTOR INPUTS in producing their OUTPUTS. Compare SOCIAL COSTS. Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005 Want to thank TFD for its existence? Tell a friend about us,...
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Opportunity costs are at the center of the economic sphere and govern the cost of every financial process. Learn more about the definition and relative calculations of opportunity cost, explore the relationship between explicit and implicit costs, and apply your understanding with examples. Cost of...
Explicit Cost Definition, Importance & Examples Comparing Cost Classifications Classification of Costs | Process, Types & Examples How to Analyze Mixed Costs Cost of Goods Sold | COGS Calculation, Formula & Examples Cost Classifications on Goods & Inventory Statements Cash Discount Definition & Examples...
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Example of Opportunity Cost An executive’s stock options have just become vested. He must now choose one of two mutually exclusive actions. He can sell the options outright for $50,000 (the explicit cost) or convert them to 5,000 shares of his company’s stock at $10 per share. ...
When a task definition is part of a service, this value must match the serviceplatformFamilyvalue. cpuArchitecture Type: String Required: Conditional Default: X86_64 This parameter is required for Amazon ECS tasks hosted on Fargate. If the parameter is left asnull, the default value is automati...
Explicit costs are normal business costs that appear in a company’sgeneral ledgerand directly affect its profitability. They have clearly defined dollar amounts that flow through to theincome statement. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other dir...
Thecost of goods soldis the most basic explicit cost used in analyzing per-unit costs. Thus, in the equation above, a company could also break down its opportunity costs by units to arrive at a per-unit economic profit. Individuals starting their own business might use economic profit as a...