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A company's expenditure on raw materials is regarded as?

A company's expenditure on raw materials is regarded as?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Explicit cost
  • B Implicit cost
  • C Prime cost
  • D Average cost
Correct Answer: Option A
Explanation:
Explicit costs are direct payments incurred by a firm in the course of running a business.
These are costs actual and physical costs incurred by a firm. Examples of explicit costs include wages,
lease payments, utilities, raw materials, and other direct costs.

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