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The exclusion principle
Explicit Costs
Cash disbursements to external parties for the operation costs of a business, like employee salaries, rental expenses, and raw materials.
Explicit Cost
The monetary payment made by a firm to an outsider to obtain a resource.
Accounting Profits
The net income a company has after subtracting all costs and expenses from total revenue, as recognized in financial statements.
Opportunity Cost
The value of the next best alternative that is foregone as a result of making a particular decision.
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