The formula for calculating accounting profit is total revenue minus _____ costs.
A)explicit financial
B)total
C)opportunity
D)explicit financial costs minus implicit opportunity

Question

Quizplus · Accepted Answer

Accounting profit is calculated by subtracting explicit financial costs from total revenue. Explicit financial costs are those that involve actual monetary payments, such as salaries, rent, utilities, and taxes. Therefore, choice A is the best option as it specifically mentions explicit financial costs.

The Formula for Calculating Accounting Profit Is Total Revenue Minus