Accounting profit ignores which of the following?Group of answer choicesimplicit coststaxes paidcapital costsexplicit costslabor costs

Accounting profit ignores implicit costs.

Here's why:

1. Accounting profit is calculated by subtracting explicit costs from total revenue. Explicit costs are direct costs that can be easily identified and measured. This includes costs like wages, rent, materials, and other out-of-pocket expenses.

2. Implicit costs, on the other hand, are the opportunity costs of using resources already owned by the firm. They represent potential income that could have been earned if the resources were used in the next best alternative way.

3. Since implicit costs are not actual cash outflows, they are not considered in the calculation of accounting profit.

4. Therefore, while accounting profit takes into account explicit costs, taxes paid, capital costs, and labor costs, it ignores implicit costs.