Glossary · Micro · Economic foundations
Accounting cost
Only the money actually paid out: wages, rent, materials, interest. It leaves out the value of the owner’s own time and money, so it understates what a business really costs.
Also called: explicit cost
Related terms
More from economic foundations
Definitions are the start
See the term used, not just defined.
The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.