Editing Opportunity cost (section)

===Explicit costs===
[[Explicit cost]]s are the direct costs of an action (business operating costs or expenses), executed through either a cash transaction or a physical transfer of resources.<ref name=":2" /> In other words, explicit opportunity costs are the out-of-pocket costs of a firm, that are easily identifiable.<ref name=":3">{{cite web|date=2016|title=Explicit and implicit costs and accounting and economic profit|url=https://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/economic-profit-tutorial/a/explicit-and-implicit-costs-and-accounting-and-economic-profit-cnx|access-date=1 November 2020|website=Khan Academy}}</ref> This means explicit costs will always have a dollar value and involve a transfer of money, e.g. paying employees.<ref name=":10">{{cite web|title=Explicit Costs - Overview, Types of Profit, Examples|url=https://corporatefinanceinstitute.com/resources/knowledge/accounting/explicit-costs/|access-date=2021-04-30 |df=dmy-all|website=Corporate Finance Institute|language=en-US}}</ref> With this said, these particular costs can easily be identified under the expenses of a firm's income statement and balance sheet to represent all the cash outflows of a firm.<ref name=":4">{{cite web|date=5 February 2020|title=Explicit Costs: Definition and Examples|url=https://www.indeed.com/career-advice/career-development/explicit-cost|access-date=1 November 2020|website=Indeed}}</ref><ref name=":10" />

Examples are as follows:<ref name=":3" /><ref name=":5">{{cite journal|last1=Crompton|first1=John L.|last2=Howard|first2=Dennis R.|date=2013|title=Costs: The Rest of the Economic Impact Story|url=http://pdfs.semanticscholar.org/ca98/7798f556cac60a1fb81204c0a04f4b8ca697.pdf|archive-url=https://web.archive.org/web/20190304215502/http://pdfs.semanticscholar.org/ca98/7798f556cac60a1fb81204c0a04f4b8ca697.pdf|url-status=dead|archive-date=2019-03-04 |df=dmy-all|journal=Journal of Sport Management|volume=27|issue=5|pages=379–392|doi=10.1123/JSM.27.5.379|s2cid=13821685}}</ref>

* Land and infrastructure costs
* Operation and maintenance costs—wages, rent, overhead, materials

Scenarios are as follows:<ref name=":4" />

* If a person leaves work for an hour and spends $200 on office supplies, then the explicit costs for the individual equates to the total expenses for the office supplies of $200.
* If a printer of a company malfunctions, then the explicit costs for the company equates to the total amount to be paid to the repair technician.