Explicit Cost and Implicit Cost
Module 3 - Discussion. The explicit cost is kept on record by the accountant of the firm while implicit cost is not on the record and is hard to be traced back. What Is Accounting Cost In Economics Accounting Education Learn Accounting Accounting Principles Economic profit Total revenue Total explicit costs Total implicit cost. . Economic profit 200000 - 85000 - 130000. Also Read - Revenue Deficit Examples of Implicit and Explicit Cost. The measurement of Explicit Cost is objective in nature because it is actually incurred whereas Implicit Cost occurs indirectly and that is why its measurement is subjective. Opportunity Costs Explicit Costs Implicit Costs Lets look at each cost to learn why it is so. An explicit cost is that which is clear and identifiable in monetary terms. Explicit and implicit cost. In economics an implicit cost also called an imputed cost implied cost or notional cost is the opportunit...
