private costs are included in economic profit but not in accounting profit.

Question

Quizplus · Accepted Answer

Private costs, sunk costs, external costs, and cash payments are all components that are included in both economic and accounting profit. But implicit costs, which are the opportunity costs of using resources owned by the firm instead of selling them to others, are included in economic profit but not in accounting profit. Hence, the only correct choice in this case is E.

Private Costs Are Included in Economic Profit but Not in Accounting