Accountants and Economists differ in their calculations of profits in that the former consider

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Accountants consider only explicit costs such as material costs, labor costs, and other direct expenses in calculating profits, while economists take into account both explicit and implicit costs like opportunity costs, which is the cost of the next-best alternative use of resources. However, sunk costs, which are those that have already been incurred and cannot be recovered, are not considered by accountants or economists in their profit calculations. Fixed costs are also considered by both accountants and economists, but only as a component of the total cost of producing goods or services, not in calculating profits.

Accountants and Economists Differ in Their Calculations of Profits in That