Accounting profit vs Economic profit скачать в хорошем качестве

Accounting profit vs Economic profit

Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs; accounting profit consists of revenue minus explicit costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm's resources. Accounting profit is the monetary costs a firm pays out and the revenue a firm receives. It is the bookkeeping profit, and it is higher than economic profit. Accounting profit = total monetary revenue- total costs. Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives. Economic profit = total revenue - (explicit costs + implicit costs). To like us on Facebook, visit   / accountingpluss   Subscriber:    / accountingplus   explicit cost A direct payment made to others in the course of running a business, such as wages, rent, and materials, as opposed to implicit costs, which are those where no actual payment is made. implicit cost The opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. economic profit The difference between the total revenue received by the firm from its sales and the total opportunity costs of all the resources used by the firm. accounting profit The total revenue minus costs, properly chargeable against goods sold.