What is the difference between economist and accountants view on cost?

Answer 1

Economists view costs in terms of opportunity cost, which includes not only explicit expenses but also the value of foregone alternatives when a choice is made. In contrast, Accountants focus on explicit costs, which are direct, measurable expenses recorded in financial statements. While accountants emphasize historical data and financial reporting, economists often consider broader implications and future costs in decision-making. This difference shapes how each profession analyzes financial situations and advises on resource allocation.