1. Explicit costs, such as money for buying status, are the actual expenditures made by a manufacturer in the factor market to buy or rent the required factors of production, i.e., the monetary amount paid by the enterprise to the owners of economic resources outside the enterprise. Examples of such payments are production costs, wage costs, marketing costs, etc., thus it is a tangible cost. Generally the costs calculated by cost accounting are explicit costs, and the balance of sales revenue minus explicit costs is called book profit. From a certain point of view, the explicit cost reflects the actual application of the cost, can be reflected in the value of the product and has the characteristics of direct calculation.

2. Implicit cost (Implicit cost), for example, in order to buy equipment and give up the cost of buying materials, is the manufacturer itself owns and is used in the production process of those factors of production of the total price. It is a cost that is hidden in the total cost of the enterprise and is not subject to financial audit supervision. Is due to the behavior of enterprises or employees and intentionally or unintentionally caused by the future costs and transfer costs with a certain degree of covert, is the cost of the future tense and the transfer of the sum of the cost of the form, such as management decision-making errors brought about by the huge increase in the cost of the leadership's failure of authority caused by the top and bottom of the inconsistency, distortion of information and instructions, inefficiency, and so on. Compared to explicit costs, these costs are hidden, difficult to avoid and not easy to quantify. Hidden costs refer to the cost of a company's lost opportunity to use its own resources (excluding cash). As opposed to explicit costs, they refer to the total price of those factors of production that a manufacturer owns and that are used in the production process of that firm.

1. Current cost is the exchange price required to acquire the same asset or its equivalent. Current cost in current cost accounting usually refers to replacement cost, that is, the full cost of reacquiring the same asset or reproducing the same product. Current Cost Accounting A method of accounting in which financial statements stated at historical cost are restated with adjustments based on current replacement cost to eliminate the effects of inflation and price increases and to correctly reflect the financial position and results of operations of an enterprise.

2. A type of current value accounting. The procedure is: (1) Determine the current replacement cost of assets and other items. (2) Adjust balance sheet items and income and retained earnings statement items to current cost. (3) Calculate the asset holding gain or loss. Under the current cost model, assets are valued at replacement cost during the holding period, and the increase in the value of an asset compared to its historical cost is expressed as unrealized and realized holding gain for the period, which is calculated by first summarizing the difference between the historical cost of the item in question and the current cost of the item in question (i.e., the asset holding gain or loss), and then summarizing realized and unrealized holding gain or loss on the item. (4) Restatement of current cost basis (4) Restatement of current cost basis financial statements. The disadvantage of this method is that it is difficult to determine the current replacement cost of individual items.