Table : TABLE 1 COMPARING ACCOUNTING VERSUS ECONOMIC PROFITS FROM OPERATING A BUSINESS
| TABLE 1 | COMPARING ACCOUNTING VERSUS ECONOMIC PROFITS FROM OPERATING A BUSINESS |
| Item | Accountant | Economist |
| Annual revenue | $120,000 | $120,000 |
| Less explicit costs |
| Wages | −$50,000 | −$50,000 |
| Lease payments | −$20,000 | −$20,000 |
| Cost of goods sold | −$15,000 | −$15,000 |
| Utilities | −$5,000 | −$5,000 |
| Insurance | −$5,000 | −$5,000 |
| Office supplies | −$5,000 | −$5,000 |
| Accounting Profit | +$20,000 | |
| Less implicit costs |
| Forgone earnings from job offer | — | −$40,000 |
| Forgone earnings from money invested | — | −$10,000 |
| Economic Profit | | –$30,000 |