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Eskander Kian Ben Aissa
on Oct 25, 2024

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Accounting profit takes into account explicit costs,but economic profit does not.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenue, representing the net income reported on a company's financial statements.

Explicit Costs

Direct, out-of-pocket payments for expenses incurred in conducting business, such as rent, salaries, and materials.

  • Contrast explicit and implicit costs and comprehend their importance in the analysis of economic and accounting profits.
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Caroline AllenOct 31, 2024
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