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Sauron [17]
3 years ago
6

Accounting profit is typically rev: 06_26_2018 Multiple Choice smaller than economic profit because the former does not take imp

licit costs into account. greater than economic profit because the former does not take explicit costs into account. greater than economic profit because the former does not take implicit costs into account. equal to economic profit because explicit costs include all opportunity costs.
Business
1 answer:
miv72 [106K]3 years ago
7 0

Answer:

greater than economic profit because the former does not take implicit costs into account.

Explanation:

Accounting profit= total revenue - explicit cost

Total revenue =price x quantity sold  

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

an example

revenue = 100

explicit cost = 50

implict cost = 20

accounting profit = 100 - 50 = 50

economic profit = 50 - 20 = 30

economic profit is less than accounting profit

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

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A__________produces finished-goods inventory in advance of customer demand using a forecast of sales.
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Push system.

Explanation:

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The legal definition of "small business" varies by country and by industry. In the United States, the Small Business Administrat
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Answer:

Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.

Explanation:

1. Better technology for the business.

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2. Better capital management.

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3 years ago
A bond with a $1,000 face value and a 10 percent annual coupon rate matures in 15 years. a. Determine the value of the bond to a
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Based on the details given, the following are true:

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<h3>Value of Bonds </h3>

First find coupon:

= 10% x 1,000

= $100

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In conclusion, Bond B is overvalued so your friend should pick Bond A.

Find out more on Bond price calculation at brainly.com/question/25365327.

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