Which of the following is an example of something that economists would consider a cost but accountants would not?
A) the wages paid to employees of a firm
B) the wages that the owner of a firm could have earned in some alternative job
C) rent paid to a business's landlord
D) the cost of leather used in the production of footballs

Question

Quizplus · Accepted Answer

Economists would consider the opportunity cost (i.e. the wages the owner could have earned in an alternative job) as a cost, but accountants would not include it in the firm's accounting costs. Accounting costs mainly focus on explicit, monetary expenses incurred by a business.

Which of the Following Is an Example of Something That