An example of an explicit cost is
A) a payment on a loan for a computer.
B) the savings interest lost by investing $10,000 in capital instead of saving the money.
C) forgone wages.
D) the opportunity cost of a $50,000 investment into a building.
E) the amount of money one could receive for renting a company truck to another business.

Question

Quizplus · Accepted Answer

An explicit cost is a cost that requires a direct payment of money. The payment on a loan for a computer is an explicit cost because it requires the borrower to pay a set amount of money to the lender within a specified time period.

An Example of an Explicit Cost Is