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igomit [66]
3 years ago
13

How are profits and losses calculated? What is the difference between economic profit and accounting profit?

Business
1 answer:
Tanzania [10]3 years ago
3 0

Answer: Profit and loss is calculated by subtracting total explicit costs from total revenue.

Economic profit is calculated by subtracting total implicit and and explicit costs from total revenue while accounting profit is calculated by subtracting only explicit cost from total revenue.

A. Economic profit

B. Accounting profit

C. Less

D. Cost

Explanation:

Profit and loss = Total revenue - Total explicit cost

If the value gotten is postive, it is a profit. If it is negative, it is a loss.

Accounting profit = Total revenue - Total explicit cost

Economic profit = Accounting profit - Accounting profit

Economic profit is always less than accounting profit because opportunity cost and explicit cost are substracted from total revenue. But to calculate accounting profit, only explicit cost is substracted from total revenue.

I hope my answer helps you.

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total number of possible votes = (30 x 2) + (20 x 2) + 10 = 110 votes

any decision must be approved by more than 50% of the votes, but since the votes are bundled in tens, 60 votes are needed.

Stockholders                                     number of    

<u>A        B         C         D          E   </u>       <u> positive votes</u>           <u>  win</u>

yes   no        no       no         no               30                           no

yes   yes       no       no        no                60                           yes

yes    no        yes     no        no                50                            no

yes    no         no      yes      no                50                            no

yes    no        no       no        yes              40                            no

yes    yes      yes      no        no                80                           yes

yes     yes     no       yes       no                80                           yes

yes     yes     no       no         yes              70                           yes

yes     yes    yes      yes        no               100                          yes

yes     yes    yes      no         yes               90                          yes

yes     yes    yes      yes        yes              110                          yes

no      yes     no       no          no               30                           no

no      yes     yes      no          no              50                            no

no      yes     no        yes        no              50                            no

no      yes     no        no         yes             40                            no

no      yes    yes       yes         no              70                           yes

no      yes    yes        no          yes            60                          yes

no      yes     no         yes        yes            60                          yes

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