What is the difference between accounting profit and economic profit?Accounting profit emphasizes cost of debt and equity while economic profit focuses on cost of debt. Accounting profit is synonymous with NI, while economic profit represents EPS. Accounting profit accounts for interest expense while economic profit accounts for interest expense and opportunity cost. Accounting profit can be calculated by NOPAT – [WACC × (Costly Capital)], while economic profit is simply NI.

The answer is C. Accounting profit accounts for interest expense while economic profit accounts for interest expense and opportunity cost.

Explanation:

Accounting cost is the difference between total revenue and total cost. The total cost are related to the operation of the business. These cost are also known as explicit cost. Accounting cost does not consider implicit cost(opportunity cost) Examples of accounting cost are interest expense, depreciation expense, cost of sales etc.

Economic cost is the difference between total revenue and the addition of explicit and implicit cost. Implicit cost(opportunity cost) is the cost of alternative forgone i.e the course of action that was abadoned for the current action. Economic cost considers all the accounting cost and the Implicit cost

i guess you could put raise the economic balance

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know