formula to find gross profit
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formula to find gross profit

The accounting income follows the historical cost principle and the matching principle, which is conducive to the objective reflection of the business management responsibility of the enterprise management authorities. But, due to the historical cost principle inherent defects, especially according to the present value of revenue and expenses by historical cost line, makes the calculation of accounting earnings lack of inner logical unity, and the matching principle is difficult to carry out, so that the book value of assets can not reflect its real value, cost cannot be fully compensated. And the economic benefit is measured in the current value, which reflects the actual value of the asset, which is beneficial to the full compensation of the cost. It is not obvious in some analyses, but it is important to note that economic profits include opportunity costs. The profit of an entrepreneur (normal profit) is usually positive, but economic profit can be either positive or negative (loss). That's why the opportunity cost is included: in a completely competitive market, when marginal cost equals marginal revenue, profit maximization or loss minimization conditions arise. If the market price is lower than the total average cost, which means that the economic profit is negative, the entrepreneur needs to compare the value of the loss and the average variable cost. If the business continues to operate, the negative economic profit must not be lower than the average variable cost, otherwise the entrepreneur would rather shut down the company than continue to take the loss. The city of bentugon salvis, in the southwestern state of Rio grande do, has a reputation as the "capital of Brazilian wine" and has a history of almost 150 years. Nearly 85 per cent of Brazil's wine is produced in more than 700 vineyards, which have a total area of less than 400 square kilometres. The wine is fresh and balanced with cabernet sauvignon, merlot and chardonnay. His European central bank held interest rates unchanged and signaled that it would maintain its aggressive currency, despite data showing strong economic performance in the region. Inherent flaws in accounting earnings "People say 'oh, those experts', but we're seeing what we call potential risks being rolled out. This is not what the experts say, this is what the economy is showing. " So, again, stay objective and open, don't close yourself, always be curious and curious, so that you can get motivated to keep moving forward. Strictly speaking, closing yourself out, denying someone else is the equivalent of your trading life going into the end. The key is to see what you want. Identifying your pursuit determines the direction and motivation of your study. The market is changing, the pursuit is improving, so you never stop learning. Through continuous thinking and learning again, I found any trading tools on the market and reasonable analysis method has its existence value, but there is a reasonable value, not the existence of absolute value. The market will always operate under these limited factors, but different stages affect the dominant factors of the market. If you close yourself and stick to some idea, then when the market's dominant factor is not your acceptance and understanding, you will be in a state of confusion and loss. Not learning or accepting other valuable things is equivalent to losing a lot of market opportunities and understanding the market. The market is very big, the connotation won't have big change, but the disposition and the expression way but often change. If you don't keep learning and absorbing, you will eventually be eliminated by the market, regardless of who you are.