Which of the following would NOT be included in the calculation of accounting profit?
A) Wages of workers.
B) The salary the owner could have earned working elsewhere.
C) Rent.
D) Medical insurance coverage for workers.
E) Access to the Internet.

Question

Quizplus · Accepted Answer

Accounting profit only takes into account explicit costs, such as wages, rent, and insurance. The salary the owner could have earned working elsewhere is an implicit cost and is not included in the calculation. Access to the Internet is also not an explicit cost and therefore would also not be included.

Which of the Following Would NOT Be Included in the Calculation