Accounting profit is:

Name: Accounting profit is:
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Accounting profit is the difference between total revenue and explicit costs (such as wages, rent, and material costs). It does not take into account implicit costs (such as opportunity costs of using resources) or the return to capital. Economic profit, on the other hand, takes into account all costs (implicit and explicit) and the return to capital. Therefore, accounting profit is equal to economic profit plus the return to capital.

Accounting Profit Is