Question

what is difference between emplict can explicit?

Answer 1

Based on payment, costs are classified into two categories; they are Explicit Costs and Implicit Costs. Explicit Costis the cost which is actually incurred by the organization, during production. On the other hand, Implicit Cost, are just opposite to the explicit cost, as the organization does not directly incur them, but they are implied in nature which does not involve a cash payment. The former is an out of pocket cost, while the latter is an opportunity cost.