Which of the following does NOT calculate accounting profit or economic profit properly
A)Accounting profit = Total revenue - Explicit costs
B)Economic profit = Total revenue - Total opportunity costs
C)Economic profit = Total revenue - Explicit costs - Implicit costs
D)Accounting profit = Total revenue - Implicit costs

Question

Quizplus · Accepted Answer

Accounting profit only takes into account explicit costs, which does not properly calculate overall profitability. Implicit costs, such as foregone alternative opportunities, must also be considered in order to accurately determine economic profit.

Which of the Following Does NOT Calculate Accounting Profit or Economic