Explicit costs involve direct cash payments for the use of a resource.

Name: Explicit costs involve direct cash payments for the use of a resource.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Explicit costs are defined as direct cash payments made to acquire a resource or to purchase goods and services. These costs are typically recorded in a company's accounting records and are easily accounted for in financial statements. Examples of explicit costs include salaries, rents, wages, and interest paid on loans.

Explicit Costs Involve Direct Cash Payments for the Use of a Resource