An '''explicit cost''' is a direct payment made to others in the course of running a business, such as wage, rent and materials,<ref name="carbaurgh">{{cite book|last=Carbaugh|first=Robert J.|title=Contemporary economics: an applications approach|url=https://books.google.com/books?id=9Pascy_5HUMC&pg=PA94|accessdate=3 October 2010|date=January 2006|publisher=Cengage Learning|isbn=978-0-324-31461-8|page=94}}</ref> as opposed to ''implicit costs'', where no actual payment is made.<ref name="lipsey">{{Cite book|title=An introduction to positive economics|edition=fourth|pages=214–7|first=Richard G.|last=Lipsey|year=1975|publisher=Weidenfeld & Nicolson|isbn=0-297-76899-9}}</ref> It is possible still to underestimate these costs, however: for example, pension contributions and other "perks" must be taken into account when considering the cost of labor.<ref name="lipsey"/>
Explicit costs are taken into account along with implicit ones when considering economic profit. Accounting profit only takes explicit costs into account.<ref name="carbaurgh"/>
==References== {{Reflist}}
{{DEFAULTSORT:Explicit Cost}} Category:Costs