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Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Siddhi Sisodia posted an Question
March 19, 2021 • 06:26 am
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30 points
30 points
- UGC NET
- Commerce
What is economic cost?
what is economic cost for the business? how it is different from accounting cost
2 Answer(s)
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Rucha rajesh shingvekar
Economic cost is the combination of losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another. ... Economic cost differs from accounting cost because it includes opportunity cost.
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Priya gulani
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Economic cost looks at the gains and losses of one course of action versus another. It does this in terms of time, money, as well as resources. The term also includes determining the gains and losses that might have occurred by taking another course of action. Economic cost includes opportunity cost, unlike accounting cost, which only takes into account the amount of money spent. Economic cost is the accounting cost (explicit cost) plus the opportunity cost (implicit cost). Implicit cost refers to the monetary value of what a company foregoes because of a choice it made.
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Ronak kumari upadhyay
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Economic Cost. Economic cost includes both the actual direct costs (accounting costs) plus the opportunity cost. For example, if you take time off work to a training scheme. You may lose a weeks pay of rs350, plus also have to pay the direct cost of rs200. Thus the total economic cost = rs550.
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Rucha rajesh shingvekar
You can calculate accounting cost by subtracting your expenses from your revenue. ... You can calculate economic cost by subtracting implicit costs from your accounting cost.