“The accounting profit figure is simply a measure of the true profit of an organisation.” Discuss.

Economic Profit is the difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. In the long run, firms in a perfectly competitive industry will not make economic profit. The graph below illustrates that there are no economic profits. The left graph illustrates the long-run supply decision of George Bailey’s bagel restaurant, a representative firm in the industry. At Price P*0 George Bailey’s bagel restaurant is earning an economic profit. George Bailey was

When a firm produces at the point where MR = MC, the profit that it is earning is considered to be

(Alternative Measures of Profit) Why is it reasonable to think of normal profit as a type of cost to the firm?

I believe that since there were accounting profits during Turnip Tom’s first year, that this shows that Tom can expect growth, increasing his profits in future. We must remember that although Tom had accounting profits they do not account for the cost of personal resources and money used in the business.

As an experienced worker at Schlotzsky’s Deli, I acquired the responsibility of generating a weekly profit report. At the end of each week, I collected the revenue our store earned in the cash form, and deposit the earnings at the bank. After making the deposit, I would receive a report from the bank that reported how much revenue our store earned off of credit and debit transitions. Finally, after all the sources of revenue were accounted for, I tallied the total revenue our store generated for that week. Next, I subtracted the weekly expenses from the weekly revenue, to generate the weekly profit. From here, I entered this data into an Excel spreadsheet and compared the profits from prior weeks.

If you take away nothing else from this article, remember this: Net income is a fiction; cash from operations is reality.

The ROCE (profitability) of 5.6% shows that the company pays more for its borrowings, which reduces shareholders’ earnings. The company’s ROCE is based on Sales Revenue to Capital Employed of 0.83 (low margin/high turnover) and the operating profit margin is 6.75%. So this evaluation shows that the company makes 6.75p (before interests and taxes) for every £ of sales.

Warren E. Buffett is to measure performance by gain in intrinsic value on a per-share basis, not accounting profit. In my viewpoint, this would not be true since both individual and the whole performance should be taken into account.

Profits—Profits are the ultimate measure of how efficiently we provide customers with the best products for their needs. Profits are required to survive and grow.

When it comes in increasing profits, it's tempting to concentrate on making new sales or

Determining the profit of a business is another major part of management. Profit is the total income that you receive after paying all of your debts. All debts include for example rent, wages, and interest. A general formula to calculate profit is P = R - C. This says when total revenue is subtracted from

"Profit" is the economic value created by the organisation after deducting the cost of all inputs, including the cost of the capital tied up. It therefore differs from traditional accounting definitions of profit. In the original concept, within a sustainability framework, the "profit" aspect needs to be seen as the real economic benefit enjoyed by the host society. It is the real economic impact the organization has on its economic environment. This is often confused to be limited to the internal profit made by a company or organization (which nevertheless remains an essential starting point for the computation). Therefore, an original TBL approach cannot be interpreted as simply traditional corporate accounting profit plus social and environmental impacts unless the "profits" of other entities are included as a social benefits.

Profitability measures the company’s ability to generate profit in their business. If the company experiences losses, management tends to delay the releasing of annual financial statement in order to avoid the discomfort of communicating as a bad news (Modugu et.al 2012) and if the company experiences profits, management tends to issue the annual financial statement as soon as possible.

It is clear from the following diagram how profit arises when TR is greater than that of TC.

• For manufacturing profit, the profit making activity is the manufacturing operation (see Hang Seng Bank case).