Which of the following terms does the following define? a firm's total revenue from sales of output minus the firm's explicit costs. In other words, it is the total money made from sales of cupcakes minus the cost to make the cupcakes. Accounting profit is in most cases the same as the common understanding of profit

A. implicit costs

B. explicit costs

C. economic profit

D. accounting profit

answer is D

Question

Social Studies

Bentley Boyd

2 January, 02:20

Which of the following terms does the following define? a firm's total revenue from sales of output minus the firm's explicit costs. In other words, it is the total money made from sales of cupcakes minus the cost to make the cupcakes. Accounting profit is in most cases the same as the common understanding of profit

A. implicit costs

B. explicit costs

C. economic profit

D. accounting profit

answer is D

+3

Answers (1)

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Mollie · Answer 1

I think the answer is D. Accounting profit.

To put it simply, accounting profit is a simple difference in number between What amount the firms pay out and what amount the firm receive.

An accounting profit differ from economic profit because accounting profit still has not considered opportunity cost that exist when a company choose to took an action into account.