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Why the profit stayed the same despite sales turnover increase?
Wiki User
∙ 12y ago
There are several reasons but there are three most important points. Firstly due to marketing expenditure. Secondly is to increase the cost and the last point is prices are cuts to boost sales.
Wiki User
∙ 12y ago
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What is the value of a 1934 will pay to the bearer on demand 100 dollar bill?
Despite its age, your bill is only worth face value in worn condition, up to maybe $140 if almost unworn. $100 bills did not circulate regularly until the last 15 or 20 years as inflation rose, so many older ones stayed in circulation for very long periods of time.
What is the difference between Accounting profit and Economic profit?
economic profit & accounting profit:Economists measure a firm's economic profit. Accountants measure the accounting profit.Economic cost=total revenue-explicit cost-implicit cost. accounting profit= total revenue- explicit cost.Economic profit is smaller than accounting profit. - Arnab____________________________As per my understanding :(Jignesh Patel)Accounting profit involves non cash transactions/adjustments for depreciation, allowances, provisions etc. and application of relevant accounting standards such as capitalising development costs, leased assets etc. And importantly accounting profit is calculated for a period of time. It is calculated for whole of the entities business.Where as, Economic Profit is calculated from the perspective of economist over long run. It means the profit in real terms. It is normally calculated for the purpose of project appraisal. This includes calculating and matching the projects Cash Inflows with Cash Outflows at its present value by discounting them at the companies required cost of capital. This task requires consideration and inclusion of both financial and non-financial risk factors that affects the profits. Relevant adjustments to the above cashflows are required. For example, it considers opportunity costs, residual value, changing working capital requirements, changes in inflation level, tax rates, interest rates etc. on the cashflows over the period of the project. Obviously, this project life can be broken down into annual projections parallel to the accounting year._____________________________In the context of general management accounting, the difference between accounting profit and economic profit is simply that economic profit takes into account opportunity cost (the cash flows we gave up by choosing to devote scarce resources to one project rather than another). The basis for the notion of opportunity cost is that, since we don't have unlimited resources to invest, we are not able to invest in every single opportunity for profit, and so we must choose which projects we will invest in. And since we don't have to resources to undertake every profitable project, we also have to choose to reject some opportunties that would also be profitable. But when we reject one opportunity in favor of another, we also give up any return we would have gotten by accepting the opportunity. That profit we give up is the opportunity cost of not accepting that opportunity.Economic Profit equals Accounting Profit less Opportunity CostTo illustrate:On January 1, I call my $50,000/year job and tell them I'm quitting to start my own company. I then spend $100,000 of my own money to start and operate the new business over the first year ,and I spend all of my time running the business. At the end of the year, I have revenues of $120,000 for the year, and $100,000 in expenses for the year.My accounting profit for the year is revenues less expenses, or $120,000 - $100,000 $20,000 accounting profit. (Taxes and discounting are not figured into this example, in order to keep it simple). Making $20,000 on an investment of $100,000 looks like a good return - until I consider economic profit.But if I had just stayed in my old job, I would have made $50,000 for investing the exact same amount of time as I did running my business. The $50,000 salary I gave up by choosing to go into my own full time business (since there is only one me, and I couldn't do both) is the opportunity cost of my decision to go into business for myself. To calculate my economic profit or loss, I must deduct from my $20,000 accounting profit the $50,000 I gave up to see the real results of my decision in economic terms.As it turns out, my accounting profit of $20,000 is actually an economic loss, when I factor in what I would have realized if I had chosen to remain in my old job.Accounting Profit less Opportunity Cost equals Economic Profit or (Economic Loss)$20,000 less $50,000 equals $(30,000) economic lossyes that's all
What is the advantages and disadvantages of Cable-stayed bridge?
Advantage: It is strong. Also the cables won't break under extreme temperatures. Disadvantages: Wind is a big factor. It can rock the bridge side to side, causing the cables to become lose.
What is crowding costs?
In economics, crowding out is a phenomenon occurring when Expansionary Fiscal Policy causes interest rates to rise, thereby reducing investment spending. That means increase in government spending crowds out investment spending.Changes in fiscal policy shifts the IS curve, the curve which describes equilibrium in the goods market. A Fiscal Expansion shifts IS curve to the right from IS1 to IS2. A fiscal expansion increases equilibrium income from Y1 to Y2 and interest rates from i1 to i2. At unchanged interest rates i1, the higher level of government spending increase the level of Aggregate Demand. This increase in demand must be met by rise in output. At each level of interest rate, equilibrim income must rise by the multiplier times the increase in government spending.If the interest rate stayed constant at i1, the goods market is in equilibrium in that planned spending equals output, but the assets market is no longer in equilibrium. Income has increased, and, therefore, the quantity of money demanded is higher. Because there is an excessive demand for real balances, the interest rate rises. Firms planned spending declines at higher interest rates, thus the aggregate demand falls. Therefore, the equilibrium is at higher interest rates. The adjustment of interest rates and their impact on aggregate demand dampen the expansionary effect of the increased government spending.Source: Wikipedia
What effect did Fords economic policy have of the economy?
inflation went down, but unemployment remained high
Why did Catholics move to Maryland despite the Calvert support?
Because Cecil Calvert stayed in England, they stayed , too.
Why did catholics move to Maryland despite Calverts support?
Because Cecil Calvert stayed in England, they stayed , too.
Why catholics move to Maryland despite the calverts support?
Because Cecil Calvert stayed in England, they stayed , too.
Why did few Catholics move to Maryland despite the calverts'support?
Because Cecil Calvert stayed in England, they stayed , too.
Why did few Catholics moved to Maryland despite the Calvert's support?
Because cecil calvert stayed in england, they stayed, too
Why did few Catholics move to Maryland despite the Calvert's' support?
Because cecil calvert stayed in england, they stayed, too
Why did few Catholics move to Maryland despite the Calvert' support?
Because cecil calvert stayed in england, they stayed, too
Why did few catholics moves to Maryland despite the Calverts' support?
Because Cecil Calvert stayed in England, they stayed , too.
Why did few Catholic's move to Maryland despite the Calvert's support?
Because cecil calvert stayed in england, they stayed, too
Why did few catholic move to Maryland despite the Calvert support?
Because cecil calvert stayed in england, they stayed, too
Why did few catholics move to Maryland despite the Calvert's supports?
Because cecil calvert stayed in england, they stayed, too
Why did few Catholics move to Maryland despite the Calvert support?
Because cecil calvert stayed in england, they stayed, too
