Which of the following statements about the relationship between economic costs and accounting costs is true?

Question

Quizplus · Accepted Answer

Accounting costs only consider explicit costs (i.e. direct costs like wages, rent, and supplies) while economic costs take into account both explicit and implicit costs (i.e. opportunity costs or the value of the best alternative foregone). Therefore, economic costs will always be equal to or greater than accounting costs.

Which of the Following Statements About the Relationship Between Economic