Dictionary of Accounting Terms: imputed cost
imputed cost
cost that is implied but not reflected in the financial reports of the firm; also called implicit cost. Imputed costs consist of the opportunity cost of time and capital that the manager has invested in producing the given quantity of production and the opportunity costs of making a particular choice among the alternatives being considered.
Dictionary of Business Terms: imputed cost
imputed cost
expense not incurred directly, but actually borne. For example, a person who owns a home debt-free has an imputed rent expense equal to the amount of interest that could be earned on the proceeds from the sale of the home if the home were sold.
