The economic function of profits and losses is to determine the performance of a company. This is what will contribute to the overall measure of the economy in a region.
Profits = revenues - expenses
economic profits in a industry suggest the industry
greater then economic profits,as accounting profits do not include implicit costs
because they convey info about rewards people should anticipate experiencing by shifting resources from one activity to another
A firm jointly owned and run by two or more people who share profits and losses is a partnership.
direct resources in response to changes in the economy
Economic profit will never exceed accounting profit. The accountant will calculate total cost using only explicit costs (basically a transfer of money) that the firm makes. On the other hand, .
Profits = revenues - expenses
economic profits in a industry suggest the industry
greater then economic profits,as accounting profits do not include implicit costs
because they convey info about rewards people should anticipate experiencing by shifting resources from one activity to another
what is the difference between reasonable profits and economic profits
by gaining profits
Profits and losses are shared evenly Except otherwise stated in the contract.
A firm jointly owned and run by two or more people who share profits and losses is a partnership.
Peak performance.
yes it is