What is the relationship between economic profit and accounting profit
A)Economic profit will never exceed accounting profit.
B)Economic profit is most often equal to accounting profit.
C)Economic profit is always at least as large as accounting profit.
D)Economic profit is a less complete measure of profitability than accounting profit.

Question

Quizplus · Accepted Answer

Economic profit accounts for both explicit and implicit costs, including opportunity costs, while accounting profit only considers explicit costs. Therefore, economic profit will never exceed accounting profit.

What Is the Relationship Between Economic Profit and Accounting Profit