0
What else can I help you with?
Is Economic profit is found by subtracting accounting costs from total revenue?
yes
How can one determine economic profit by analyzing a graph?
To determine economic profit by analyzing a graph, one can look at the intersection point of the total revenue and total cost curves. Economic profit is calculated by subtracting total costs from total revenue. If the total revenue is higher than total costs, there is economic profit. If total costs are higher, there is economic loss.
How can one determine and calculate economic profit in a business?
To determine economic profit in a business, subtract total costs (including both explicit and implicit costs) from total revenue. Economic profit is calculated by subtracting all costs, including opportunity costs, from total revenue.
Subtracting costs from revenue calculates?
profit
Profits is calculated by subtracting costs from what?
Profit is calculated by subtracting costs from revenue.
What accounting concepts stipulates that accounting profit is the difference between revenue and expenses?
The accounting concept that stipulates accounting profit as the difference between revenue and expenses is the matching principle. This principle requires that expenses be matched with the revenues they help generate within the same accounting period, ensuring that financial statements accurately reflect the company's performance. Thus, accounting profit is calculated by subtracting total expenses from total revenues, providing a clear picture of profitability.
How do you calculate economic profit and what factors are considered in determining it?
Economic profit is calculated by subtracting both explicit costs (such as wages and rent) and implicit costs (such as opportunity costs) from total revenue. Factors considered in determining economic profit include production costs, revenue generated, and the value of alternative opportunities foregone.
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
Is economic profit equal to accounting profit?
no
How is economic profit determined and what factors contribute to its calculation?
Economic profit is determined by subtracting all explicit and implicit costs from total revenue. Factors that contribute to its calculation include production costs, opportunity costs, and the competitive environment.
Difference between accounting profit and economist's profit?
The accounting profit is the difference between total revenue and total cost excluding the economic cost (opportunity cost) of owner-supplied resources such as time and capital. At the other hand, In the economic cost, we include the opportunity cost in our calculations. · When total revenue exceeds both explicit and implicit costs, the firm earns economic profit. · Economic profit is smaller than accounting profit Another answer culed be: Economic Profit is slightly different than accounting profit, which merely the firm's total revenues minus its total costs. Economic profit is defined as total revenues minus total operating costs minus opportunity cost. Opportunity cost is defined as the cost of the profits you forgo by not doing another activity. For example the opportunity costs of opening a lemonade stand is equal to the difference between the accounting profits of the lemonade stand minus the accounting profits of a more profitable hot dog stand.
What is mean by revenue in accounting?
revenue mean the grows of stock when you sale out the item or is the profit of income
