Which of the following is an explicit cost?
A) the depreciation of a delivery van
B) the cost of electricity used in a store
C) the cost of the owner's resources
D) the owner's foregone opportunity of running the business

Question

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An explicit cost is a cost that involves direct monetary payment. The cost of electricity used in a store requires direct monetary payment and is therefore an explicit cost. A is an example of a depreciation expense, which is typically an implicit cost. C is an example of an opportunity cost, which is also an implicit cost. D is an example of an opportunity cost to the owner, which is also an implicit cost.

Which of the Following Is an Explicit Cost