An explicit cost is:

A) omitted when accounting profits are calculated.
B) a money payment made for resources not owned by the firm itself.
C) an implicit cost to the resource owner who receives that payment.
D) always in excess of a resource's opportunity cost.

Explicit Cost

The monetary payment made by a firm to an outsider to obtain a resource.

Accounting Profits

The net earnings of a company calculated according to generally accepted accounting principles, taking into account all explicit costs but not implicit costs.

Implicit Cost

Costs that represent the loss of potential gain from using assets in an alternative option rather than in their current use.