Distinguish between the economist’s definition of profit and the accountant’s definition. Which is superior for decision making?
What will be an ideal response?
Accounting profit is revenue minus actual, out-of-pocket costs. Economic profit is revenue minus total costs, including the opportunity cost of all factors. Accounting profit typically is greater than economic profit. Although more difficult to compute, economic profit is superior because it incorporates the concept of opportunity cost of resources, including capital and the owner’s forgone earnings.
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Both Horwitz (1973) and Scheiber (1975) emphasize the restraining effects of judicial formalism on U.S. economic growth in the antebellum period
Indicate whether the statement is true or false
Which procedure or test investigates the officer's preparation, decisionmaking skills, relations with others, and knowledge and application of departmental policy?
A) oral interview board B) situational test C) performance appraisal D) written promotional test