Search results
Results From The WOW.Com Content Network
An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials, [1] as opposed to implicit costs, where no actual payment is made. [2] It is possible still to underestimate these costs, however: for example, pension contributions and other "perks" must be taken into account when ...
Implicit costs also represent the divergence between economic profit (total revenues minus total costs, where total costs are the sum of implicit and explicit costs) and accounting profit (total revenues minus only explicit costs). Since economic profit includes these extra opportunity costs, it will always be less than or equal to accounting ...
Difference between how accountants and economists view a firm. In economics, profit is the difference between revenue that an economic entity has received from its outputs and total costs of its inputs, also known as surplus value. [1] It is equal to total revenue minus total cost, including both explicit and implicit costs. [2]
Implicit costs (also referred to as implied, imputed or notional costs) are the opportunity costs of utilising resources owned by the firm that could be used for other purposes. These costs are often hidden to the naked eye and are not made known. [8] Unlike explicit costs, implicit opportunity costs correspond to intangibles.
The comparison includes the gains and losses precluded by taking a course of action as well as those of the course taken itself. Economic cost differs from accounting cost because it includes opportunity cost. [3] [2] [4] (Some sources refer to accounting cost as explicit cost and opportunity cost as implicit cost. [2] [4])
The main difference between the two types of long-term memory is how implicit memory lives in the subconscious mind, whereas explicit memory comes from conscious thought, says Papazyan.
Measures such as carbon taxes or emissions trading schemes put an explicit price on GHG emissions. [1] The sum of implicit and explicit carbon prices is referred to as the effective carbon price. [1] [3] [4] Considering both the implicit and explicit carbon prices can contribute to a better understanding of a country's progress on tackling ...
Implementation shortfall is a commonly targeted benchmark, which is the sum of all explicit and implicit costs. Sometimes, an opportunity cost of not transacting is factored in. [5] After measurement, costs must be attributed to their underlying causes. Finally, this analysis is used to evaluate performance and monitor future transactions.