Accounting profit is the profit remaining after the opportunity costs associated with a financial decision are included.

Question

Quizplus · Accepted Answer

Accounting profit only takes into account the explicit costs of a financial decision such as expenses and revenues. It does not include opportunity costs, which are the costs of foregone alternatives. Therefore, option B is correct as accounting profit does not include opportunity costs.

Accounting Profit Is the Profit Remaining After the Opportunity Costs