Accounting profit is equal to

Question

Quizplus · Accepted Answer

Accounting profit is calculated by subtracting explicit costs from total revenue. Explicit costs refer to those costs that are directly incurred by a company and are reported in its financial statements, such as salaries, rent, and utilities. Implicit costs are opportunity costs that are not reflected in the financial statements, such as the value of the owner's time and resources. Therefore, option D is the correct answer as it deducts explicit costs.

Accounting Profit Is Equal to