Difference between revisions of "Accounting profit"
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| − | ''' | + | In [[economics]], '''accounting profit''' is the term used for [[profit]] that is calculated by subtracting [[explicit costs]] from [[total revenue]]. It is distinct from [[economic profit]] in that it does not account for opportunity costs, such as the [[cost]] incurred by the manager of a firm who chooses to run the firm instead of working at a different job. |
[[Category:Business]] | [[Category:Business]] | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 01:57, March 10, 2009
In economics, accounting profit is the term used for profit that is calculated by subtracting explicit costs from total revenue. It is distinct from economic profit in that it does not account for opportunity costs, such as the cost incurred by the manager of a firm who chooses to run the firm instead of working at a different job.