aeeounting expense versus eeonomie eost Paton states " ... the accountant's 'expense' for the partieular business and the economist' s' cost of produetion' are two quite differentthings ... [The] whole scheme of accounting is based upon the plan of showing as costs of expense only the expirations of purchased commodities and service s, not the economie value of the serviees eontributed by the business itself in furnishing capital and management"

(paton [1923], pages 493-494). Carefully comment on the differenee between accounting expense and economic cost.

AppendixLO1