A cost that involves spending money is

Question

Quizplus · Accepted Answer

An explicit cost is a cost that involves spending money or resources in order to acquire or produce something. Implicit costs, on the other hand, are non-monetary costs such as the opportunity cost of forgoing alternative uses of resources. Indirect costs refer to costs that are not directly attributable to a specific product or service. Opportunity costs refer to the value of the next best alternative forgone. Since we are looking for a cost that involves spending money, the best answer is B) an explicit cost.

A Cost That Involves Spending Money Is