ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An intangible cost consists of a subjective value placed on a circumstance or event in an attempt to quantify its impact. Although intangible costs are more difficult to quantify, they have a real, identifiable source. Intangible costs can include: A fall in employee morale.

Detailed explanation-2: -An intangible cost is a cost that can be identified but cannot be quantified or easily estimated. Common intangible costs include impaired goodwill, loss of employee morale, or brand damage. While not directly measurable, intangible costs can have a very real impact on a company’s bottom line.

Detailed explanation-3: -Tangible cost is a cost that is seen instantly such as in purchasing products, paying employees etc. Intangible cost is a cost that is not seen but its effects are perceived later in future. Intangible cost of an action may be much greater than tangible cost.

Detailed explanation-4: -Tangible costs are those with a direct numerical value that you can quantify, such as the salary committed to hiring a new employee. Intangible costs don’t have a direct monetary cost associated with them. The impact is difficult to quantify, such as a loss of productivity from a position when hiring a new employee.