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l>BREAKING DOWN 'Explicit Cost' An explicit cost is an expense that has occurred and has a clearly defined dollar amount. These expenses are incurred during business operations and are actual out-of-pocket cash outlays. The objective dollar amounts are subject to reporting. <html>

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Explicit Cost Definition | Investopedia
value. Good examples of explicit costs would be items such as wage expense, rent or lease costs as it is easy to see the source of the cash outflow and the business activities to which the expense is attributed. <span>BREAKING DOWN 'Explicit Cost' An explicit cost is an expense that has occurred and has a clearly defined dollar amount. These expenses are incurred during business operations and are actual out-of-pocket cash outlays. The objective dollar amounts are subject to reporting. Examples of Explicit Costs Net income of a business reflects residual income remaining after all explicit costs have been paid. Explicit costs are the only costs necessary to calculate

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