Economic Profit vs Accounting Profit

Implicit cost: An example of implicit cost in my business is opportunity cost due to business management forgoing monthly wage during the early stages of the company while providing their services to the company to ensure available revenues are utilized to sustain successful operation. Explain these costs Fixed cost are the expenses incurred by the business irrespective of the volume of business activity while variable cost varies proportionally to the volume of sales or production and are associated with the cost of producing additional units (Malloy, 2004). Implicit cost is not reported as an actual loss but as opportunity cost as well as potential income areas of the company. The business does not spend money on rent as we are currently operating from the basement of my house for now.