Explicit costs include:
A) out-of-pocket costs.
B) fixed costs.
C) variable costs.
D) All of these are included in explicit costs.

Question

Quizplus · Accepted Answer

All of these are included in explicit costs. Explicit costs are the actual out-of-pocket expenses incurred by a firm in producing and selling a good or service, including out-of-pocket payments for wages, rent, utilities, materials, and other inputs. This includes both fixed and variable costs, as well as any other out-of-pocket expenses.

Explicit Costs Include