Difference Between Implicit Cost and Explicit Cost
Implicit Cost vs Explicit Cost
Implicit cost and explicit cost are terms used in accounting . As just about anything in accounting, there is always what we call as a relative cost to each transaction. However as these costs are measured, the most common types being mentioned are implicit and explicit cost. It is intriguing to know what sets them both apart though.
Implicit cost
Implicit cost is considered as the cost that has occurred on an enterprise but is not initially reflected and reported as a direct expenditure.