All of the following are included in the calculation of accounting profit EXCEPT which of option?

Choose 1 answer:
(A) total revenue
(B) fixed costs
(C) variable costs
(D) implicit costs
(E) explicit costs

Question

All of the following are included in the calculation of accounting profit EXCEPT which of option?

Choose 1 answer:
(A) total revenue
(B) fixed costs
(C) variable costs
(D) implicit costs
(E) explicit costs

Accepted Answer

∻Solution∻ ‖ a ⋮ Accounting Profit Definition: Accounting profit is calculated by subtracting the explicit costs from the total revenue. ‖ ‖ b ⋮ Explicit vs. Implicit Costs: Explicit costs are the direct, out-of-pocket payments for resources, while implicit costs represent the opportunity costs of using resources owned by the firm. ‖ ‖ c ⋮ Exclusion in Accounting Profit Calculation: Implicit costs are not considered when calculating accounting profit because they represent foregone opportunities rather than actual expenses. ‖ ∻Answer∻ ⚹ (D) implicit costs ⚹ ∻Key Concept∻ ⚹ Accounting profit calculation excludes implicit costs. ⚹ ∻Explanation∻ ⚹ Accounting profit is concerned with actual monetary transactions and does not consider the opportunity costs of resources owned by the firm, which are implicit costs.◊What impact would the inclusion or exclusion of implicit costs have on the calculation of accounting profit in the context of macroeconomics?⍭ Generate me a similar question◊⚹

Sia