Which of the following would be shown on IBM's accounting statement?
A)revenue, implicit costs, explicit costs, and economic profit
B)revenue, implicit costs, explicit costs, and accounting profit
C)revenue, explicit costs, and economic profit
D)revenue, explicit costs, and accounting profit
E)revenue, implicit costs, and accounting profit

Question

Quizplus · Accepted Answer

IBM's accounting statement would show revenue (total sales), explicit costs (expenses that can be directly attributed to the production of goods or services, such as salaries and rent), and accounting profit (revenue minus explicit costs). Implicit costs (opportunity costs of using resources for a particular activity instead of their next best alternative) and economic profit (revenue minus both implicit and explicit costs) are not typically included in accounting statements.

Which of the Following Would Be Shown on IBM's Accounting