In Calculating Accounting Profit, Accountants Typically Don't Include

question 483

Multiple Choice

In calculating accounting profit, accountants typically don't include

• A)long-run costs.
• B)sunk costs.
• C)explicit costs of production.
• D)opportunity costs that do not involve an outflow of money.

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Definitions:

Income Inelastic

Describes a good or service whose demand does not significantly change with a change in consumers' income.

Small Firms

Businesses with a relatively small number of employees or low volume of sales compared to larger industry players.

Social Security Payments

Government-provided payments to eligible individuals, such as retirees or disabled persons, financed through payroll taxes.