Explicit Costs Meaning Formula Uses Vs Implicit Costs
Explicit Cost Meaning They are mentioned in the financial statements of a firm. They are tangible costs—actual cash payments are made. These expensesExpensesAn expense is a cost incurred in completing any transaction by an organization, leading to either revenue generation creation of the asset, change in liability, or raising capital.read more must result in a cash outflow—depreciationDepreciationDepreciation is a systematic allocation method used to account for the costs of any physical or tangible asset throughout its useful life....