Although economists and accountants treat many costs differently, they both treat the cost of capital the same.

Question

Quizplus · Accepted Answer

Economists consider opportunity costs, including the cost of capital as the return that could have been earned on the next best alternative investment. Accountants, however, typically focus on explicit costs and do not always account for opportunity costs in the same way, leading to different treatments of the cost of capital.

Although Economists and Accountants Treat Many Costs Differently, They Both