ECONOMICS
PROFIT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
If a business makes $85 dollars/day and spends $43 on explicit costs, what is their Accounting Profit?
|
|
$43
|
|
|
$85
|
|
|
$128
|
|
|
$42
|
Explanation:
Detailed explanation-1: -Accounting profit is the net income for a company and is calculated by subtracting expenses from revenues, with guidance from the Generally Accepted Accounting Principles (GAAP).
Detailed explanation-2: -Examples of implicit costs include the loss of interest income on funds and the depreciation of machinery for a capital project. They may also be intangible costs that are not easily accounted for, including when an owner allocates time toward the maintenance of a company, rather than using those hours elsewhere.
There is 1 question to complete.