As a general rule, when accountants calculate profit they account for explicit costs but usually ignore
A)certain outlays of money by the firm.
B)implicit costs.
C)operating costs.
D)fixed costs.

Question

Quizplus · Accepted Answer

When accountants calculate profit, they usually only account for explicit costs, which are costs directly incurred by the firm such as wages, rent, and materials. They typically ignore implicit costs, which are the opportunity costs of using resources for one purpose instead of another. Implicit costs may include factors such as the value of the owner's time and the forgone opportunity to invest in a different venture.

As a General Rule, When Accountants Calculate Profit They Account