What is meant by implicit cost?

An implicit cost is any cost already incurred but not explicitly expressed or reported as a separate expense. It reflects the value of opportunity that occurs when an organisation uses internal capital for a project without any precise reimbursement for resource use.

What is meant by explicit cost?

Explicit costs are typical business costs which appear in the general ledger and have a direct impact on the profitability of a company. Examples of explicit costs include salaries, raw materials, utilities, lease payments, and other direct costs.

What are implicit costs an implicit cost is quizlet?

Implicit costs are the opportunity costs of production that do not require a monetary payment.