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Write not more than 3 lines explaining the different between the economic profit and accounting profit?
Accounting profits tend to be higher than economic profits as they omit certain implicit costs, such as opportunity costs.For example, if you invest $100,000 to start a business and earned $120,000 in profit, your accounting profit would be $20,000. Economic profit would add implicit costs, such as the opportunity cost of $50,000 should you have been employed instead during that period. As such, you would have an economic loss of $30,000 ($120,000 - $100,000 - $50,000).
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Does accounting profit or economic profit determine how entrepreneurs allocate resources between different businesses ventures?
yes
What are the differences between economic and accounting concepts of cost?
The economic concept of cost considers both explicit costs (such as wages and materials) and implicit costs (such as opportunity costs and owner's time). Accounting concept of cost focuses mainly on explicit costs and is used for financial reporting and tax purposes.
What is the difference between an economic cost and accounting cost?
Economic costs look refers to a combination of accounting costs(Explicit costs),Implicit costs and opportunity costs. Accounting costs only considers financial and costs incurred or agreed to be payed in order to produce a good or a service.
Non economic activities and its examples?
What is the difference between economic and non economic activities.?
What is the dichotomy between macro economic and micro economic?
hehehe
Does accounting profit or economic profit determine how entrepreneurs allocate resources between different businesses ventures?
yes
How does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures?
yes
What Is The Different Between Bookkeeping And Accounting?
Bookkeeping simply concerns with the recording of transactions in the books of accounts while accounting records, sums up, examines and communicates the financial data/transactions/economic events.
What are the main different between Financial accounting and Cost accounting?
do you have best answer from FA
What is the major difference between finance and accounting?
The major difference between finance and accounting is that, accounting is general, deals with all economic facts that occur throughout the financial year, financial is specific deals only with finances
What is Difference between temporary and permanent staff?
manual accounting and computerized accounting is different from each other
Explain the reasons for using ratios as a means of explaining accounting information?
Ratios are used in accounting to provide a comparative analysis of financial data. They allow for easy interpretation and comparison of numbers across different time periods or between companies. Ratios also help identify trends, assess financial health, and identify areas of strength or weakness within a company. Overall, ratios provide a simplified way of conveying complex financial information.
What is the principal concern with accounting for related party transactions?
Differences between economic substance and legal form.
What is the different between cost accounting and financial accounting?
the question am asking have not been answered .because financial accounting and cost accounting is not the same nor even having the same answer .
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.
Define 'Accounting' Distinguish between Financial Accounting and Management Accounting?
Define 'Accounting' Distinguish between Financial Accounting and Management Accounting
What is the difference between comparative economics and comparative economic system?
The different between them is that the word economics and economic.
