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

Exchange rate, how to calculate the volume of exports? or what is the defin...

how to calculate the volume of exports? or what is the definition?

Withdrawing mrtp restrictions, Withdrawing MRTP Restrictions: The res...

Withdrawing MRTP Restrictions: The restriction on the scrutiny of an investment proposal that it does not violate the provisions of MRTP Act was withdrawn. This freed big bus

Sales revenue maximization model , What are the major differences between t...

What are the major differences between the equilibrium of profit maximiser and sales revenue maximiser?

Insurance market and calculate risk premium, There are two individuals in t...

There are two individuals in town, one is high risk and the other is low risk.1 The probabilities of having an accident for the low risk individual and high risk individual are p

Indifference curve, What is indifference curve and its properties?

What is indifference curve and its properties?

Open access regime , Open Access Regime Normal 0 fa...

Open Access Regime Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

102, why does the quantity of salt tend to be unresponsive to changes in it...

why does the quantity of salt tend to be unresponsive to changes in its price

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