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Investments glossary

Explicit Cost


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I gave Donald free rein, he has great vision, and everything he touches seems to turn to gold. Donald is the smartest person I know.

— Fred Trump

Explicit costs are normal business costs that appear in the general ledger and directly affect a company’s profitability. Explicit costs have clearly defined dollar amounts, which flow through to the income statement. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other direct costs.

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