Accounting profit ignores which of the following costs?

Question

Quizplus · Accepted Answer

Accounting profit only takes into consideration explicit costs, which are the direct expenses incurred in running a business, such as wages, rent, and materials. Implicit costs, which are the opportunity costs of the resources used in business operations and may include forgone income from alternative uses of those resources, are not factored into accounting profit. Therefore, choice A is the correct answer.

Accounting Profit Ignores Which of the Following Costs