![Economics 101: Explicit Costs](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2016/11/1-23.jpg?fit=637%2C424&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What are explicit costs?
Explicit Costs are actual cash outlays of money.
Think of them as direct payments for something.
- A check is paid for rent.
- A wire transfer pays a salary.
- A credit card is swiped to purchase raw materials.
These are explicit costs, obviously different from implicit costs.