Question

A cost that is incurred when an actual monetary payment is made is a(n) __________ cost A. expressed B. explicit C. implicit D. positive

Answer 1

Answer:

explicit cost

Explanation:

The explicit cost will be the accounting expenses, those which are related to business operations like: materials, labor, rent, insurance and others.

This cost will be presented in the income statement and determinate the net income for the firm.

In constract for the explicit cost there are implicit cost. Those cost are related to output we renounce for using the factor in the current business (interest from a banking account instead of in investment in a forniture business; wages from another job instead of being entrepreneur)