Distinguish between explicit costs and implicit costs.


Distinguish between explicit costs and implicit costs.

Types of Costs

We study various types of costs- average, variable, fixed. However, it is possible to divide costs based on their nature as well. We then get explicit and implicit costs.

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Explicit costs are costs for which payments need to be made. To meet such costs, money actually goes out of a firm. These costs are easy to understand...

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Explicit Costs: Definition & Examples


Chapter 8 / Lesson 14

Learn what explicit cost is. Explore explicit cost examples, how explicit cost affects businesses, and what the differences are between explicit and implicit cost.

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