Word of the Week: Explicit Cost
As a business owner, one of the easiest things to identify is explicit cost. The most common examples of explicit costs include wages, utilities, rent, raw materials, and other direct expenses companies pay to conduct business. For example, a bakery who makes cakes, cookies, or pastries knows that more than likely there will be an increase rise in raw materials and rent. That includes the sugar the baker must buy to produce their merchandise. The business owner must determi