An explicit cost is
A)omitted when accounting profits are calculated.
B)a money payment made for resources not owned by the firm itself.
C)an implicit cost to the resource owner who receives that payment.
D)always in excess of a resource's opportunity cost.

Question

Quizplus · Accepted Answer

An explicit cost refers to a direct, out-of-pocket payment for resources that a firm does not own, such as wages, rent, and materials, which is why option B is correct.

An Explicit Cost Is