 We are going to study today the topic of explicit cost under the financial constraint. As the word explicit make it clear that it pertains to that cost that is quite obvious, quite clear or we can say the tangible. So those costs that we are going to enter in our cost accounting in our ledgers and for which we are going to pay the inputs they will be called the explicit cost. And particularly this is just opposite to the implicit cost. Now explicit cost, if we look at all those aspects, hiring of labour, hiring of the inputs or we can say for the energy for the chemicals for pesticides for any type of the material these all will be included and that will be reported. For any type of the management skills for which we are going to pay any security personals or unlike anything so these will be the quite clear, tangible for which we can say that these are explicit costs and totally implicit plus explicit they both make up the economic cost of a system. So generally if we look at it, then this too is the same as we talked about that the implicit costs we see in the form of an opportunity cost and we can assess it. So here even if we look at the explicit cost, then in one or other form this also possesses the opportunity cost. Now what is the opportunity cost? Means if you are investing an amount of money on an input then that amount of money, it has also an alternative value and it has also an alternative resource means only that money could be used or utilized to purchase any other resource. So even in the assessment of those explicit resources we have to see that the foregone value of that value attached to it becomes an opportunity cost. Now coming to the next point we can say that these are the costs that we calculate but mostly they are included in the form of the profit. Now if we talk about profit, it means profit is always equal to revenue minus costs. So when we have to minus the cost of revenue, then all these costs that are involved in the production procedure and for which we are giving the payments, then we are including that cost. Either it was fixed cost or it was in the form of a variable form. But now there are some costs that if we say that they are not tangible and might be slightly tangible but we can say that they are not that obvious but for which we have to give the cost. Now what is it? When we say the depreciation of an asset. Now what is the depreciation? That over the time any input like machinery is not performing in the perfect form and its depreciation which we generally say there is a wear and tear of that machinery. If there is a building then you have to pay a maintenance cost. Likewise, these are the costs that we say that depreciation and it is not that tangible a trace or it cannot be assessed. But they do possess certain cost in the budget or the ledgers. So whenever the budgeting is set up, then whenever there is an allocation of the budget for the purchase of the new things but in the same way the already assets that are present whether it is cars, machinery, buildings then a certain amount of the budget is always allocated for the over come or the over hauling of this depreciation or to save the future loss we have to control this depreciation. So this cost of underlying company assets comes in the last minute or two. Now if we look at explicit costs then the best form we have is that whatever we have the costs that are present in the system they will be accounted for so then we can allocate the proper budget for those and why would we do the budget when we will include all types of the costs then proper assessment of profit will be possible. So implicit or the explicit these two kinds of costs are very important to have proper valuation. Thank you.