Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A)Economic profit takes into account all costs involved in producing a product.
• B)Accounting profit is not relevant in preparing the firm's financial statement.
• C)Economic profit always exceeds accounting profit.
• D)Accounting profit is the same as economic profit.

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Definitions:

Cost-benefit Analysis

An economic evaluation method that compares the costs and benefits of an action or decision to determine its feasibility or worth.

Ethical Theory

A systematic exposition of principles, concepts, and theories that guide moral behavior and distinguish right from wrong.

Universal Laws

Fundamental principles or laws that are believed to be universally applicable, regardless of systems or beliefs.

Direct Pronouncements

Clear and explicit statements or announcements made by an authoritative source, often used in the context of official declarations or policy communications.