Costs that are not incorporated in accounting records, but are recognized in different situations are classified as

Costs that are not incorporated in accounting records, but are recognized in different situations are classified as imputed costs. An imputed cost is a cost that is incurred by virtue of using an asset instead of investing it or undertaking an alternative course of action. An imputed cost is an invisible cost that is not incurred directly, as opposed to an explicit cost, which is incurred directly.