The way in which accountants and economists analyse the costs of a firm differ. Discuss the difference between accounting costs and economic costs of a firm.

Q: Distinguish among accounting profit, economic profit, and normal profit. Does accounting profit or…

A: The difference between the revenue earned from the sale of a product and the total cost of…

Q: Distinguish between implicit and explicit costs and give examples of each. In addition, explain how…

A: Explicit Costs are those costs that are directly observed like the cost involved in hiring labor or…

Q: Distinguish between implicit and explicit costs. How is it possible to have positive accounting…

A: Any cost that has already occurred but is not shown or reported as a distinct item is referred to as…

Q: Joe quits his computer programming job, where,he was earning a salary of $50,000 per year, to start…

A: Accounting cost also known as money cost or explicit cost can be defined as the costs which the firm…

Q: Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and…

A: Answer: Explicit cost: It is the payment made to outsiders for hiring factor services. It involves…

Q: What is the difference between economic costs and accounting costs? Explain it in your own words and…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: If firm X produces 20 units of product with a total cost of 100, what is its average cost?    a)…

A: Total cost - Total cost is the cost which includes fixed cost and variable cost included in…

Q: When a company registers zero economic profits, it may be suffering losses from the accounting point…

A: Zero economic profits: A firm is in a normal profit condition when its economic profit equals zero,…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Accounting cost =Annual lease on building +Payment to workers + Utilities cost…

Q: Explain the difference between accounting and economic profit. Give two examples of when they…

A: Accounting profit means that profit which is earned after the explicit costs are deducted from…

Q: Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit…

A:

Q: Ball Bearings, Inc., faces costs of production as follows: Total Fixed Costs Total Variable Costs…

A: Total Cost = Total Variable cost + Total Fixed costAverage cost = Total Cost/Quantity Marginal cost…

Q: Multiple Choice Question : 5.2) Which statement accurately describes the relationship between…

A: Answer: option a (Average fixed costs will always decline as the output increases) Explanation: The…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Opportunity Cost is the sum total of Accounting Cost and Opportunity Cost. Accounting Cost is the…

Q: In a company operational activities are performed to fabricate products or to provide services.…

A: Introduction Operational activities of a company has given. Primary cost of different product or…

Q: 4. Why it is important to note that the economic measurement of production costs does not…

A: The markets are where the produced goods by the sellers of the market are sold, and the buyers…

Q: The blue line on the following graph shows a firm's daily costs for the first 90 days of the fiscal…

A: Introduction :- Given :-  A graph showing firms daily cost.The expenses of the firm are given on y…

Q: A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is…

A:

Q: A firm’s total fixed cost is $360,000. Construct a table of its total and average fixed costs for…

A: Output Total fixed cost Average fixed cost = Total fixed cost / quantity 0 3,60,000 - 1 3,60,000…

Q: Suppose a company lIncurs the following costs: labor, $3,500; equipment, $900; and materials,…

A: Accounting costs are any expenses that your company has incurred.By deducting expenditures from…

Q: Anthony quit his job where he was earning an annual salary of $48,000 to open his own business.…

A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…

Q: True or false The unit share of fixed costs changes in a direct direction with the change in the…

A: Fixed cost: It is the cost that remains constant and does not get affected by the increase or…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Explicit costs are those costs that a firm openly acknowledges. To name a few, there are costs…

Q: What cost would an accounting statement reveal should current decisions be based on accounting cost.

A: Accounting statement should reveal the cost of production,cost of capital.

Q: Question 1 Output (Q) Total Fixed Cost (TFC) Total Variable cost (TVC) 0 100…

A: Marginal cost is the the cost incurred when an additional unit of input is hired. Mathematically, it…

Q: Can a firm earn an economic loss and an accounting profit at the same time?

A: The measure that depicts distribution of income to owner in a profitable process of production in…

Q: You are interested in starting a used car dealership in your country. Provide examples with…

A: Implicit cost is simply the cost provided variables of creation and hence are not paid in money…

Q: Explain the difference between and the economic relevance of fixed costs, sunk costs, variable…

A: The cost of production includes the cost of the raw materials, cost of the factors of production as…

Q: A firm has leased plant and equipment to produce video games, which can be sold in unlimited…

A: The amount of money spent on developing and selling products and services, as well as acquiring…

Q: Which of the following is considered when calculating economic profit but not accounting profit? a.…

A: Cost refers to the amount or equivalent paid or charged for something

Q: explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate…

A: All the costs that are linked or incurred to the business activities of a company and are easily…

Q: Refer to the seenario below to answer the questions. Upon graduating with an accounting degree, you…

A: Annual economic cost = explicit cost + implicit cost = rent & supplies + salary given up =…

Q: Find TC, MC, AFC, AVC, and ATC from the following table. Instructions: Enter your responses rounded…

A:

Q: Question: Imagine that you own your own business, or you are the manager of a company. Please tell…

A: A business of jeans manufacturing unit in which only the jeans are manufactured. The various…

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: Solution: (a)Formula used (i) Total cost (TC) = Total fixed cost (TFC)+ Total variable cost (TVC)…

Q: The sole proprietor of the "Books and More" bookstore receives all accounting profits earned by her…

A: The firms and businesses operate in the market with the motive of earning high level of profits, and…

Q: (Alternative Measures of Profit) Calculate the accounting profit or loss as well as the economic…

A: Accounting profit is simply calculated by subtracting the explicit costs from the total revenues of…

Q: Suppose that a firm produces 475,000 units a year and sells them all for $20 each. The explicit…

A: All the firms try to maximize their profits. There are two types of profits- accounting profits and…

Q: Question 10 TT Quantity of Output Fixed Costs Variable Costs 15 2 15 12 4 15 23 15 38 8. 15 46 10 15…

A: Total cost = total fixed cost + total variable cost Marginal cost = (change in total cost / Change…