Explicit Cost

[munna99185]

An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials. 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.

Source: wikipedia

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University

[Nurul Mohammad Zayed]

There is another type of such important cost called implicit cost like time.