What is the difference between explicit cost and implicit cost?

Explicit cost originally refers to the cost involved in cash outflow, and also refers to the cost of showing whether the value can be regenerated in the asset state. Its connotation function and extension efficiency refer to the cost that determines whether the value can be regenerated under various categories of soft and hard performance utilization.

Implicit cost is a kind of cost that is hidden in the total cost of economic organization and separated from financial supervision, relative to explicit cost. It is caused by the behavior of economic subjects intentionally or unintentionally, and the hidden future cost and transfer cost are the sum of the future tense of the cost and the cost form passed on.

Although there is no need for cash outflow, hidden cost originally refers to the cost associated with the utilization value-price ratio of various assets and other related factors, or the original value-price ratio coexists in monetary form, such as the difference between utilization efficiency and utilization value-price ratio (the former can be realized by technical factors and the latter can be realized by non-technical factors). In the value analysis of "multi-value chain cost benefit", the part that cannot be optimally selected and utilized belongs to hidden cost.

1. Cost is the economic value measured in money by consuming resources by producing and selling certain kinds and quantities of products. Enterprises need to consume means of production and labor to produce products, and these consumption is measured in money in the cost, which is manifested in material expenses, depreciation expenses, salary expenses and so on. The business activities of an enterprise include not only production, but also sales activities, so the expenses incurred in sales activities should also be included in the cost. At the same time, in order to manage the production cost, it should also be included in the cost. At the same time, the expenses incurred for managing production and business activities also have the nature of forming costs.

2. Cost is the economic value needed to acquire material resources. Purchasing cost or purchasing cost is the price and expenses paid by enterprises for production and business activities, purchasing various means of production or purchasing commodities. With the continuous production and business activities, these costs are converted into production costs and sales costs. Cost is the value sacrifice of resources paid or payable to achieve a certain goal, which can be measured by monetary unit. Cost is the economic value sacrificed to achieve one goal and give up another.