What is economic cost?

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.

What is the difference between economic cost and accounting cost?

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).

What are the different types of economic costs?

A list and definition of different types of economic costs. Fixed Costs (FC) The costs which don’t vary with changing output. Fixed costs might include the cost of building a factory, insurance and legal bills. Even if your output changes or you don’t produce anything, your fixed costs stay the same.