A payment for resources purchased by a firm from outside suppliers is a(n)
A) fixed cost.
B) explicit cost.
C) joint cost.
D) derivative cost.
E) isocost.

Question

Quizplus · Accepted Answer

An explicit cost is a cost that involves direct monetary payment by a firm to an outside entity, such as a supplier. The payment for resources purchased from outside suppliers is an explicit cost.

A Payment for Resources Purchased by a Firm from Outside