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Write not more than 3 lines explaining the different between the economic profit and accounting profit?
Wiki User
∙ 15y ago
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).
Wiki User
∙ 15y ago
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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 .
What is the difference between comparative economics and comparative economic system?
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Define 'Accounting' Distinguish between Financial Accounting and Management Accounting?
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