question 5 (2 points)\nhow is accounting profit calculated?\n a) total revenue minus explicit costs.\n b)…

question 5 (2 points)\nhow is accounting profit calculated?\n a) total revenue minus explicit costs.\n b) total revenue minus implicit costs.\n c) total revenue minus economic costs.

question 5 (2 points)\nhow is accounting profit calculated?\n a) total revenue minus explicit costs.\n b) total revenue minus implicit costs.\n c) total revenue minus economic costs.

Answer

Brief Explanations:

Accounting profit is calculated by subtracting explicit costs (costs that involve a direct outlay of money) from total revenue. Implicit costs (opportunity costs not involving a direct payment) are not considered in accounting profit. Economic profit, on the other hand, subtracts both explicit and implicit costs from total revenue.

Answer:

A. Total revenue minus explicit costs