Which of the following is not an explicit cost?
A) Payment for raw materials
B) The value of the firm's owner own time
C) Wages for the workers
D) Insurance cost
E) Utilities payment

Question

Quizplus · Accepted Answer

The owner's own time is an implicit cost, as it represents the opportunity cost of using their time in the business rather than pursuing an alternative venture or leisure activity. Explicit costs are actual out-of-pocket expenses that the firm incurs, such as raw materials, labor wages, insurance, utilities payment, etc.

Which of the Following Is Not an Explicit Cost