Asked by Kelai
Suppose a company has the following costs:
Labor $400
Equipment $300
Materials $100
A)What is the total accounting cost?
B)What is the total economic cost?
In general, accounting costs are the dollars paid for goods and services. In your example $800. Economic costs are expressed in terms of opportunity costs. I don't believe you have provided enough info to determine this. However, economic costs would, likely but not a sure thing, be less than accounting costs.
Labor $400
Equipment $300
Materials $100
A)What is the total accounting cost?
B)What is the total economic cost?
In general, accounting costs are the dollars paid for goods and services. In your example $800. Economic costs are expressed in terms of opportunity costs. I don't believe you have provided enough info to determine this. However, economic costs would, likely but not a sure thing, be less than accounting costs.
Answers
There are no human answers yet.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.