The conflict between an economist's measurement of cost and an accountant's measurement of cost is that the economist will put a value on the full opportunity cost of an action, while the accountant usually does not count a cost unless money actually changes hands.

Question

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Economists consider both explicit costs (direct monetary payments) and implicit costs (opportunity costs of using resources that could have been used elsewhere), while accountants typically focus on explicit costs where actual monetary transactions occur.

The Conflict Between an Economist's Measurement of Cost and an Accountant's