All of the following would be considered explicit costs of operating a business except

Question

Quizplus · Accepted Answer

The rental value of equipment the company owns and uses for its own production is not an explicit cost as there is no cash outflow involved. Explicit costs are actual cash outflows that a business incurs in order to operate. Utility expenses, the cost of raw materials used in production, and advertising expenses are all examples of explicit costs.

All of the Following Would Be Considered Explicit Costs of Operating