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Implicit Cost

What Does Implicit Cost Mean?
A cost that is represented by lost opportunity in the use of a company's own resources, excluding cash.

Investopedia explains Implicit Cost
These are intangible costs that are not easily accounted for. For example, the time and effort that an owner puts into the maintenance of the company rather than working on expansion.

Related Terms

Efficiency Principle
Explicit Cost
Intangible Asset
Lifetime Cost
Normal Profit
Opportunity Cost
Tangible Asset
More Related Terms

Related Links

Intangible Assets Provide Real Value To Stocks - Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
Reading The Balance Sheet - Learn about the components of the statement of financial position and how they relate to each other.

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