Economists always include both implicit and explicit costs in the calculation of their profits while Accountants only cater for explicit costs when calculating profits.So due to the inclusion of opportunity costs, which can be termed implicit costs, economists' profits will always be lower than accountants' profits.Hence an accountant may say they are making profits while it is different from an economist's view.
Yes, profit making is the primary goal of business. It is the reason businesses exist. If they don't make a profit, they will not survive.
Stagnation or zero growth as long as they aren't losing money.
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, economists will factor in opportunity cost as well. For example, if a person takes their life's savings and invests it in a new company, the interest that the money could be making will be an opportunity cost for the firm, as well as the salary they could be earning at a different firm. This all means that economists will calculate higher costs, which means that economic profit is lower than accounting profit.
if competative industry z is making substantial economic profit, output will:
When firms are making no or little profit, there is incentive to innovate/invest because they wish to increase profits in the future. When profit is already achieved, there is less incentive (disincentive) to do so.
A management accountant might contribute to a formal decision making process by ordering feasibility studies. A management accountant can also tell everyone how much things will cost and how much profit can be made.
If a business is not making a profit then they are losing money if this continues a business will reach a point in which it will have no money and declare bankruptcy.
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
A profit making organisation is an organisation which its priority is to make a profit rather than to help the community.
In business, making a profit; not losing money.that there is profit or cash on hand. having enough to pay what one owes, with extra left over. "in the red" means in debt.have money in the bank. As opposed to being in the red, is to be in debt
unprofitable
Absolutely. Trading of shares involves the risk of losing money as well as gaining profit and the person needs to do extensive research in making investments in the stockmarket. Thus the profit gained from stock exchange is purely Halal (unlike the interest from banks)
Non profit making organization is the type that does not deal with profit oriented
I don't believe they franchise, but why would you want to-they are losing money to walmart and amazon. before you invest your life savings in a store-try to find one making a profit.
Arrogance Produce Profit-Losing Entity
any business u making money more than your expenses thas is profit otherwise loss
Non profit making organization is the type that does not deal with profit oriented