Explain the Difference Between an Implicit Cost and an Explicit

question 150

Essay

Explain the difference between an implicit cost and an explicit cost,and how both costs relate to economic and accounting profits.

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Definitions:

Goal Attainment

The process of setting, pursuing, and achieving objectives, often involving planning, effort, and persistence.

Organisational Performance

A measure of how efficiently and effectively an organization meets its objectives.

Open System

An open system is one that interacts with its environment, exchanging information, resources, and materials to sustain its operations and adapt to environmental changes.

External Environment

Factors outside of an organization’s control that can affect its performance and strategy, including economic, regulatory, and competitive forces.