Explicit costs are accounting costs, Microeconomics

Assignment Help:

An economist's view of costs contains both explicit and implicit costs.  Explicit costs are accounting costs, and implicit costs are the opportunity costs of an allocation of resources (i.e., business decisions).  Accountants subtract total cost from total revenue and arrive a total accounting profits.  An economist, though, would include in the total costs of the firm the profits that could have been made in the next best business opportunity (e.g., the opportunity cost).  Thus, there is a significant dissimilarity in how accountants' and economists' view profits B economic profits versus accounting profits.

 


Related Discussions:- Explicit costs are accounting costs

Capital account, Capital Account: The Capital Account presents transfe...

Capital Account: The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transac

Equilibrium firms, how to find total revenue total cost approch in equilibr...

how to find total revenue total cost approch in equilibrium firms

Companies that attend to productivity and growth simultaneou, Is Indian com...

Is Indian companies running a risk by not giving attention to cost cutting? 2. Discuss whether Indian Consumer goods industry is growing at the cost of future profitability. 3. Dis

Matlab, How do I do I use affsolve?

How do I do I use affsolve?

Homework help question! , You have just been hired by your city’s departmen...

You have just been hired by your city’s department of health. Your first task is to use cost-benefit analysis to evaluate a smocking awareness program that the department has been

The nature of policy-making, The Nature of Policy-Making : It follows...

The Nature of Policy-Making : It follows that recommending policy must itself be a subjective exercise. The effects of particular-policies at a particular historical juncture

What are the important functions to maximize total surplus, What are the im...

What are the important functions to maximize total surplus? The market equilibrium maximizes total surplus since the market performs four significant functions are as follows:

Economic growth and economic development, Economic growth and Economic deve...

Economic growth and Economic development: Economic Growth refers to an increase in real aggregate output (real GDP) reflected in increased real per capita income.A country is

Theory, who propounded the pure international theory of trade?

who propounded the pure international theory of trade?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd