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| 1. |
What is explict cost |
| Answer» Explicit cost refers to the expenditures incurred or payments made by a firm to various factors of production and also non-factors of production. These costs are recorded in the books of account as they deal with the expenditure incurred on the tangible items. These costs are also called as ‘out of the pocket expenses’. For example, payments in the form of wages for labour, rent for building. | |