The correct answer is: A. Explicit cost
Explicit costs are costs that a company incurs in order to produce its goods or services. These costs are directly paid out by the company, such as wages, rent, and materials.
Depreciation is the allocation of the cost of an asset over its useful life. It is not an actual cash outflow, but it is a cost that must be recorded in the company’s financial statements.
Therefore, the cost of depreciation fund is an explicit cost.
Option B, opportunity cost, is the cost of not doing something else. For example, if a company decides to invest in a new machine, the opportunity cost is the profit that could have been made by investing the money elsewhere.
Option C, average cost, is the total cost of producing a good or service divided by the number of units produced.
Option D, none of the above, is not the correct answer.