Asked by Christian Broussard on May 20, 2024
Verified
Accountants and Economists differ in their calculations of profits in that;
A) economists consider sunk costs
B) accountants consider implicit costs only
C) accountants consider explicit costs only
D) all of the above
Implicit Costs
Non-monetary opportunity costs, such as time or foregone alternatives, not directly accounted for in financial transactions.
Explicit Costs
Direct, out-of-pocket payments for expenses such as wages, rent, and materials, which are easily quantifiable.
Accountants
Professionals who manage financial records, conduct audits, and ensure tax compliance, playing a pivotal role in financial planning and analysis.
- Distinguish between accounting and economic profits.
Verified Answer
Learning Objectives
- Distinguish between accounting and economic profits.
Related questions
Scott Used $4,000,000 from His Savings Account That Paid an ...
A Manager Invests $400,000 in a Technology That Should Reduce ...
If a Firm Is Earning Negative Accounting Profits,it Implies ...
All of the Following Costs Are Included in the Calculation ...
If You Had Economic Profits of $50,000,implicit Costs of $100,000,and ...