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implicit cost

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Financial Dictionary

Implicit Cost

A cost that is represented by lost opportunity in the use of a company's own resources, excluding cash.

Investopedia Commentary

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 Links

The Hidden Value Of Intangibles
Reading The Balance Sheet

See also: Explicit Cost, Intangible Asset, Opportunity Cost, Tangible Asset

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