Define the difference between accounting and economic cost
Define the difference between accounting and economic cost.
Expert
Difference in between Accounting Cost and Economic Cost are as follows:
Accounting cost implies the expenses incurred through the firm on production and sale of service or goods. Such are paid by the firm to the outsiders. For illustration, payment made for wages as raw materials, power, fuel and building and so forth are the accounting costs. For contractual payments accounting cost is the money paid. This includes payments and charges made through the enterprise to the suppliers of resources. This is the explicit cost.
But economic cost contains not only explicit cost but also imputed or implicit cost. Implicit cost contains rent charged upon owned premises, wages paid to entrepreneur and interest charged on owned capital. Implicit cost is not comprised in accounting cost. Accounting cost contains only explicit costs that are recorded inside the books of account. Implicit cost will not be recorded in the books of account. Therefore the economist’s concept of cost is more comprehensive like compared to accountant’s concept of cost.
Occupational licensing often requires qualifications with small relevance for performance in a specific position before an individual can legally be hired. Artificial and inefficient barriers to the practice of specific occupations, such as dog groome
Disadvantaged groups have historically been pressured toward low wage jobs in a procedure termed as: (1) occupational crowding. (2) labor staggering. (3) systemic discrimination. (4) reverse favoritism. (5) nepotism. Q : Fundamental goal of maximizing in firms Economists suppose that firms hire labor to further a fundamental goal of maximizing: (1) economic profit. (2) workers’ welfare. (3) economy-wide employment. (4) managerial compensation. (5) the total value of output.
Economists suppose that firms hire labor to further a fundamental goal of maximizing: (1) economic profit. (2) workers’ welfare. (3) economy-wide employment. (4) managerial compensation. (5) the total value of output.
In what condition the concept of marginal costing basically applied?
When this purely competitive labor market is firstly in equilibrium at D0L, S0L, a move to equilibrium at D1L, S0L would be inconsistent along with increases in: (w) the price of output. (x) labor productivi
Labor’s physical productivity based most directly on technology and the: (w) tastes and preferences of consumers. (x) transactions demand for money. (y) prices and availability of the other resources. (z) level of per capita income.
The relationship between the elasticity of demand for labor and the elasticity of demand for a specific type of output the labor produces is: (1) uniformly negative. (2) uniformly positive. (3) zero. (4) curvilinear. (5) highly variab
Explain about the term Boom in phases of business cycle.
Increases within the wage rate all the time: (w) lack impact on the relative price of leisure. (x) increase the relative price of leisure. (y) decrease the relative price of leisure. (z) increase the quantity of individual labor supplies.
Illustrates the plethora of definitions regarding subject matter of economics?
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