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implicit cost can be defined as the amount of cost which we have give up in order to use the factor of production in the organization , while An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials, as opposed to implicit costs, which are those where no actual payment is made.
Rent, salary and other operating expenses are considered explicit costs and are recorded within a company's financial statements. The main difference between the two types of costs is that implicit costs are opportunity costs, while explicit costs are expenses paid with a company's own tangible assets.
Explicit cost is the accounting cost that is recorded and appears in the financial statments ,Implicit cost is the oppotunity cost "best benefit forgone" ,a benefit of an abandoned investment opportunity
The Major difference between these two terminologies are,Explicit cover the operating expenses and Implicit cover the opportunity cost.
