Because a Firm Has Implicit Costs as Well as Explicit

question 234

Multiple Choice

Because a firm has implicit costs as well as explicit costs,

• A)its economic profit is usually the same as its accounting profit.
• B)its accounting profit is always less than its economic profit.
• C)its economic profit is usually more than its accounting profit.
• D)its economic profit is usually less than its accounting profit.

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Definitions:

Retail Business

A type of business that sells goods directly to consumers, typically operating from physical locations or through online platforms.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various processes, machinery, and operations.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions related to a business.

Managerial Accounting

Refers to the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals.