1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Akimi4 [234]
2 years ago
9

Distinguish between economic and accounting profit

Business
2 answers:
Masja [62]2 years ago
8 0

Answer:

The main difference between accounting and economic Profit is that accounting profit refers to monetary revenue minus monetary costs which includes any type of cost in the organization in the form of rents, salaries, material costs etc. Economic profit refers to the monetary revenue minus total cost.

Explanation:

maksim [4K]2 years ago
5 0

The differences between economic and accounting profits exist in their definitions, despite their similarities.

<h3>What is economic profit?</h3>

Economic profit has the following characteristics:

  • It includes both explicit and implicit costs.
  • It is determined by economic principles, especially the economic concept of opportunity cost.
  • In summary, economic profit is the total revenue minus both implicit (opportunity cost) and explicit costs.

<h3>What is accounting profit?</h3>

Accounting profit has the following characteristics:

  • It includes only explicit costs.
  • It is determined by accounting principles (U.S. GAAP or IFRS).
  • It is equal to net income or revenue minus explicit expenses.

Thus, there are differences between accounting and economic profits.

Learn more about economic and accounting profit at brainly.com/question/25742185

You might be interested in
A Roth IRA and a Tax Deferred investment plan are just two of many ways you can invest into for your retirement. If you wanted t
Firdavs [7]
<span>If I want to contribute amounts greater than $5,000 on an annual bases, I would consider the Tax Deferred Investment Plan; the Tax Deferred Annuity most suitable in this situation because a Roth IRA has a contribution limit of $5,000 annually, whereas the Tax Deferred Investment Plan has no contribution limit.</span>
7 0
3 years ago
Read 2 more answers
When spoiled goods have a disposal​ value, the net cost of the spoilage is computed by​ ________. A. adding the costs to complet
madam [21]

The net cost of the spoilage is computed by  adding the costs to complete a

saleable product to the costs accumulated to the inspection point.

The net cost of spoilage involves summing up the disposable value of the

product to the costs accumulated to inspection point.

The cost of spoilage also refers to the costs accrued as a result of wastage

or loss during manufacturing.

Read more on brainly.com/question/25393278

3 0
2 years ago
Buying power of dollar through the years
Allushta [10]
<span>Purchasing Power of Money in the United States ... Why not current year? ... Power Calculator compares the relative value of a past amount of dollars to a present ... Please let us know if and how this discussion has assisted you in using our ...</span><span>
</span>
5 0
3 years ago
A company's beginning Work in Process inventory consisted of 20,000 units that were 80% complete with respect to direct labor. A
zloy xaker [14]

Answer:

Total number of equivalent units= 100,000

Explanation:

Giving the following information:

A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period.

Weighted-average method:

Units completed= 90,000

Ending inventory= 25,000*0.4= 10,000

Total number of equivalent units= 100,000

3 0
3 years ago
In your own words define ecology and discuss how it relates to child development
tatuchka [14]
Ecology is a systematic relationship of all living things with each other and their interaction with the environment that they live in. All living things in the world are connected with each other in terms of energy. So, it affects child development in ways of eating food from plants and animals. Moreover, the child could be molded by social interactions within the community.
5 0
3 years ago
Other questions:
  • The person who receives the message is called
    6·1 answer
  • Jessica finds out that the government introduced a new trade policy that will increase import tariffs. She calls for a meeting o
    13·1 answer
  • Twilight Corporation acquired End-of-the-World Products on January 1, 2020 for $6,200,000, and recorded goodwill of $1,000,000 a
    8·1 answer
  • A firm's database showed that the average value of all inventory items for the year was $7,650. The cost of goods sold was repor
    11·1 answer
  • At the beginning of the​ year, Swift,​ Inc.'s Work-in-Process Inventory account had a balance of $ 124 comma 000. During the​ ye
    10·1 answer
  • Larry is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to: A. develop a bu
    11·1 answer
  • The Washington Company purchased a new machine for $200,000. In addition to the invoice cost of the unit they had to pay $5,000
    6·1 answer
  • At December 31, 2017, Riverbed Corporation reported the following plant assets.
    14·1 answer
  • Oracle, a firm that sells commercial ERP and database products, provides Linux for free, selling high-margin Linux support contr
    6·1 answer
  • 1. Which of the following is true about finding the present value of cash flows?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!