Discussion Forum -Economists view profit differently from accountants, do you agree?

Peter

Peter

by Yihao (Peter) Niu -
Number of replies: 0

Yes, economists and accountants view profit differently. Economists consider economic profit, which factors in opportunity costs (forgone alternatives), while accountants focus on accounting profit, derived from revenue minus explicit costs. Economic profit provides a broader perspective on resource allocation efficiency, while accounting profit emphasizes financial performance for reporting purposes.


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