JAMB - Economics (2020 - No. 23)
A company's expenditure on raw materials is regarded as?
explicit cost
implicit cost
prime cost
average cost
Erläuterung
Explicit costs are direct payments incurred by a firm in the course of running a business. These are costs actual and physical costs incurred by a firm. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other direct costs.