In their calculation of profit, accountants typically do not take into account:
A) variable costs.
B) fixed costs.
C) opportunity costs.
D) explicit costs.

Question

Quizplus · Accepted Answer

Opportunity costs are the costs associated with choosing one course of action over another, and are not typically included in accounting calculations of profit. Instead, accountants focus on explicit costs (such as wages, rent, and materials) and may differentiate between variable and fixed costs in their analysis.

In Their Calculation of Profit, Accountants Typically Do Not Take