accounting profit versus economic profit
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accounting profit versus economic profit

The concept of accounting income is called accounting income. According to the traditional view, the accounting income refers to the difference between the realized income and the corresponding expenses. It has the following characteristics: (2) special transport vehicles for transport First of all, it costs transaction cost for the manufacturer to purchase intermediate products in the market. It includes the cost of seeking suitable suppliers, signing contracts and supervising contract execution. If the manufacturer can produce some intermediate products within the enterprise itself, it can eliminate or reduce some transaction costs, and can better guarantee the quality of the products. Second, if the manufacturers need is a special type of specialized equipment, the supplier does not generally willing to specialize in only a buyer of the product of the investment and production, because this kind of proprietary investment risk is bigger. Therefore, vendors that need this specialized device need to solve the problem of specialized devices within the enterprise. In the end, the manufacturers hire employees with specialized skills, such as specialized product design, cost management, and quality control, and establish long-term contractual relationships with them. This can be more beneficial than buying the corresponding services from other vendors, thereby eliminating or reducing the corresponding transaction costs. In New York, the U.S. energy information administration (EIA) released data showing U.S. crude inventories fell by 649.5 million barrels a day in the week ended Dec. 15, beating expectations. Gasoline stocks rose by 12.37 million barrels, but the increase was less than expected. ? Social Value: The social net profit of your organisation is understood to be the economical value made for the society. It measures the positive ramifications from the business on its human capital. Healthy labour practices, corporate community development and workplace behaviour are some from the key metrics towards measuring the social value of your organisation. This approach seeks to align the business interests while using labour interests within the organisation.The social sustainability approach seeks to develop and nurture sustainable relationships from the external and internal community.