Question

In: Economics

Businesses employ resources to use in the production and sale of a good or service. Accounting...

Businesses employ resources to use in the production and sale of a good or service. Accounting profit is typically used as a way of evaluating the success of a business, but economists argue that economic profit is more relevant to determining whether a business should continue to operate. What is the difference between these two measures of profit? Explain why accounting profit is usually greater than economic profit.

(Please write out answer versus charting it)

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Businesses employ resources to use in the production and sale of a good or service. Accounting...
Businesses employ resources to use in the production and sale of a good or service. Accounting profit is typically used as a way of evaluating the success of a business, but economists argue that economic profit is more relevant to determining whether a business should continue to operate. What is the difference between these two measures of profit? Explain why accounting profit is usually greater than economic profit. (Please write out answer versus charting it)
Businesses employ resources to use in the production and sale of a good or service. Accounting...
Businesses employ resources to use in the production and sale of a good or service. Accounting profit is typically used as a way of evaluating the success of a business, but economists argue that economic profit is more relevant to determining whether a business should continue to operate. What is the difference between these two measures of profit? Explain why accounting profit is usually greater than economic profit.
Shrewdly designed budgets assist businesses leaders with awareness of expenditures and managing resources. Businesses use a...
Shrewdly designed budgets assist businesses leaders with awareness of expenditures and managing resources. Businesses use a variety of budgets to measure their spending and develop effective strategies for maximizing their assets and revenues. Many types of organizational budgets exist and each have different purposes, strengths, and weaknesses. Respond to the following in a minimum of 175 words: Briefly discuss four types of organizational budgets.
Organizational budgets assist businesses leaders with awareness of expenditures and managing resources. Businesses use a variety...
Organizational budgets assist businesses leaders with awareness of expenditures and managing resources. Businesses use a variety of budgets to measure their spending and develop effective strategies for maximizing their assets and revenues. Organizational budgets are generally designed to meet specific needs of the organization. Discuss the benefits that may be achieved by creating a business budget. Discuss the likely organizational problems that may arise from not creating a business budget.
The Buckaneer Clinic has two service departments (Human Resources and Information Resources) and two "production" departments...
The Buckaneer Clinic has two service departments (Human Resources and Information Resources) and two "production" departments (In-patient Treatment and Out-patient Treatment). The service departments service the "production" departments as well as each other, and studies have shown that Information Resources provides the greater amount of service. Which of the following allocations would occur if Buckaneer uses the direct method of cost allocation? Multiple Choice Information Resources cost would be allocated to In-patient Treatment. Information Resources cost would be allocated to...
3. (a) What is the rule for the optimal use of (3) resources in production?   ...
3. (a) What is the rule for the optimal use of (3) resources in production?    (b) Explain what the rule means in simple English
Suggest ways to reduce production costs for businesses Is monopoly good or bad? justify your answer
Suggest ways to reduce production costs for businesses Is monopoly good or bad? justify your answer
(a) What is the rule for the optimal use of (3) resources in production? (b) Explain...
(a) What is the rule for the optimal use of (3) resources in production? (b) Explain what the rule means in simple English.
Many sole proprietorships and small businesses use cash basis accounting; however, accrual basis accounting is the...
Many sole proprietorships and small businesses use cash basis accounting; however, accrual basis accounting is the method of accounting most corporations and professionals are required to use by Malaysian Accounting Standards Board (MASB). Explain 4 reasons why corporations are required to use accrual basis accounting compared to cash basis accounting.
What is the essential difference between accrual and cash accounting? Most businesses today use accrual accounting...
What is the essential difference between accrual and cash accounting? Most businesses today use accrual accounting method. Do you know if there are any industries left using cash accounting?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT