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A Key Difference Between Accountants and Economists Is Their Different

question 141

Essay

A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant's estimate of total costs to be higher or lower than an economist's estimate? Explain.


Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Square Feet

A measure of area in the imperial system, used to calculate the size of a space, equivalent to the area of a square with sides one foot in length.

Variable Costs

Costs that vary directly with the level of production or output.

Square Feet

A unit of area measurement equal to a square that is one foot on each side.

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