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.
The costs of investing within human capital are probably to be borne by the employee when human capital a worker obtains “on the job” is: (1) general. (2) marginal. (3) precise. (4) generic. (5) specific. Q : Imports good in purely competitive When this purely competitive labor market is primarily in equilibrium at of D0L, S0L, a shift to equilibrium at D2L, S0L would be probably to follow by increases in: (1) minimum wage laws. (2) imports of this good from forei
When this purely competitive labor market is primarily in equilibrium at of D0L, S0L, a shift to equilibrium at D2L, S0L would be probably to follow by increases in: (1) minimum wage laws. (2) imports of this good from forei
American workers tend to be more productive than counterparts of their in South America or Asia into part since they have: (1) superior natural genetic endowments. (2) access to better sports programming, that promotes teamwork. (3) more capital to work with, and supe
Illustrates the important question regarding the managerial economics?
Explain the pricing under price leadership.
All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training
The knowledge regarding local shrubs and trees which Morgan learns whereas working as an apprentice landscaper into the suburbs of a huge city is an illustration of the benefits from: (1) dirty work. (2) general training. (3) dues-paying. (4) high-skilled employment.
Explain the meaning of business cost.
Illustrates the area of decision making in Managerial / Business Economics?
For most kinds of labor, the most accurate ranking of labor supplies through most elastic to least elastic is most likely: (1) firm, small industry, occupation. (2) economy, individual, occupation. (3) firm, economy, occupation. (4) individual worker,
18,76,764
1941026 Asked
3,689
Active Tutors
1429063
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!