The following are the two statements regarding concept of profit. Which of the statements being correct or incorrect.
Statement I Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses.
Statement II Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain investment at its current level.

A. Both the statements are correct

B. Both the statements are incorrect

C. Statement I is correct while Statement II is incorrect

D. Statement I is incorrect while Statement II is correct

Answer: Option A