Question

Economists disagree with the accountants regarding computing and reporting the cost of production. Please explain the critical difference and discuss, with an example, how these different views affect the profit of a company.

Write it please in atleast 300 words with your own words, typed here

Answer 1

Answer

The Profit of a company is Judge by the the Income or gain it recieve in exchange of product or service it provides . Moreover , the success is measured in many terms for example . its customer -company relationship etc . The main role of Accountant in a particular compnay is in finance and business department .Accountant work to prepare the taxes , analysing and examining the financial reports and records for the business of company . The accountant track the company profit and loss and make sure that the clients of the company regulate properly with the tax laws and rules and regulations .The accountant make budget , file tax return , send financial reports to their clients including thier financial status and demand forecast . While what an economist do for the compaany is that An economist analyses the issues of the company adressing such as the consumer demand in upcoming time and future depending on the cutrrent and past trend of the company , its market supply and demand curve variation , the position of equillibrium in the market of the company. The Economist further help in the sale of the company to maximize its profits by considering all thses mentioned factors . Economist work for the Organiztion , they do research over and over again and they are like thin tank for the company .In short , All the economic issues of the company is considered by the Economist and help in solvign these issues and Provide best solution for maximinzing its profits .Now , Let us undertsnad the Different in view of an economist and an accountant whihc create hinderence for the profit of the company .For example if the accountant has provided some wrong report of the cost of production and included a report whihc has mistakes about the production of the company it will create big issues for the conomist as , The data is not coreect and can make the conomist in trouble .This will result in Economist to make wrong demand forecast and wrong interprtation of supply and sales of the company .What happen at last is the non maximization of profit whihc can lead to the loss for aq company .These two different view are harmful for the objective of the company it will affect the following

• Employees of the company
• Customer relationship
• sale and taxation
• Profit of the company

Besides this , a lot of other damages can happen with the mistake done by the accountant as of sure it has the main play in managing the financial records , accouanting work as a whole .

Therefore Economist must agree with the accountant computing regaqrding the cost of production for the betterment of the company profit and maximization . But if does not agree due to some reason , it is harmful for the firm

HAVE A GOOD DAY !