Explicit Cost
/ɪkˈsplɪsɪt kɒst/
Definitions
- (n.) A clearly defined and direct expense incurred in a business transaction, recorded in financial statements.
The explicit cost of the contract includes materials and labor expenses.
Forms
- explicit cost
- explicit costs
Related terms
See also
Commentary
Explicit costs are distinct from implicit costs; they represent actual outlays of money, important for legal and financial clarity in contracts and business litigation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.