| Implicit Cost | Explicit Cost |
| 1. Implicit costs are usually described as opportunity costs or the loss of an opportunity in a given time or situation. | 1. Explicit costs are costs that occur and are reported in the business documents. They are also known as direct costs or accounting costs. |
| 2. Implicit costs waive the potential benefits and satisfaction in a certain business transaction. Simply put, an implicit cost is the loss of a possible benefit or asset that did not occur. | 2. An explicit cost is a cost that happens for a purpose. In addition i, explicit costs usually have a direct impact on the company and its profits. |
| 3. Implicit costs deal with intangibles that usually leave without a trace or record. Implicit costs include: wasted potential opportunities, time, profit, and labour. | 3. Explicit costs result in tangible assets or opportunities for the company. Examples of explicit costs are: payment for rent, salary and wages, services from other companies, raw materials, maintenance, bills, and other expenditures. |
| 4. Implicit costs can also be said to be the indirect results of business activities and processes. Usually, they involve indirect expenses from unforeseen events or emergencies. | 4. Explicit costs are easier to identify, recognize and account for because they leave a record or paper trail. In addition, explicit costs usually involve physical objects and money-based transactions. |
| 5. Since implicit costs leave no records, these costs are not easy to account for. | 5. Explicit costs are used by accountants in preparing business analysis and business-related documents like accounting, management and financial reports. |
