Distinguish between explicit cost and implicit cost.

1.	Distinguish between explicit cost and implicit cost.
Answer» \tBASIS FOR COMPARISONEXPLICIT COSTIMPLICIT COSTMeaningThe costs which involve outflow of cash due to the use of factors of production is known as Explicit Cost.The costs in which there is no cash outlay, is known as Implicit Cost.Alternatively known asOut-of-pocket CostsImputed CostsOccurrenceActualImpliedRecording and ReportingYesNoEstimation of CostObjectiveSubjectiveWhich profit can be calculated with the help of cost?Accounting Profit and Economic ProfitEconomic ProfitExampleSalaries, rent, advertisement, wages, etc.Interest on owner\'s capital, Salary to owner, rent of owner\'s building, etc. which do not occur in reality.\t

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