About this document

Economic and Accounting Profit Explained by fer is a document available to read on EtoBox.

1. Costs can be explicit (expressed in dollars) or implicit (opportunity costs measured in dollars). Accounting profit is total revenue minus explicit costs, while economic profit is total revenue minus both explicit and implicit costs. 2. Juan Ibarra runs a small pottery business with $72,000 in annual revenue. His accounting profit is $33,000 after subtracting his $12,000 employee payment, $5,000 rent, and $20,000 materials costs. However, his economic profit is $13,000 once you factor in his $37,000 in

Author

fer

Language

EN