Implicit Cost calculation
- This topic has 1 reply, 2 voices, and was last updated 2 years, 4 months ago by Lynn Roden.
There is something not clear to me when calculate the implicit cost.
In the example in the video when Mr. Hock calculate the economic depreciation for the implicit costs he subtract the hole economic depreciation value .
I think it should be subtract the difference between the accounting depreciation and the economic depreciation, because in that example Sarah’s economic profit reduce with $30,000 depreciation expense
- This topic was modified 2 years, 4 months ago by Yahia.
- This topic was modified 2 months, 3 weeks ago by Kevin Hock.
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