when a company hires a new employee there are implicit costs to train that employee if a manager allocates eight hours of an existing employee s day to teach this new team member the implicit costs would be the existing employee s hourly wage multiplied by eight this is because the hours could have been allocated toward the employee s current role 
another example of an implicit cost involves small business owners who may decide to pass on taking a salary in the early stages of operations to reduce costs and increase revenue they provide the business with their skill in lieu of a salary which becomes an implicit cost 