Which of the following is NOT an explicit cost?
A)$200 to hire 2 gardeners for landscaping work
B)$1500 to buy bricks for the driveway of your house
C)$25 for lunch to serve to your workers
D)the $100 in interest you lost by using your CD funds to pay for a new pizza oven

Question

Quizplus · Accepted Answer

Explicit costs are direct payments made to others in the course of running a business or undertaking a project, such as wages, rent, and materials. The $100 in interest lost by using CD funds is an example of an implicit cost, which represents the opportunity cost of using resources owned by the business for something other than their intended purpose.

Which of the Following Is NOT an Explicit Cost