net profit as percentage of sales Lay the foundation Any deviation from the plans can then be rectified through some type of intervention in the operation, which itself will probably involve some replanning. Deviations because of this plan are considered via a replanning activity and also the necessary interventions made to the job centre that can (hopefully) make certain that the new plan is carried out. Eventually, however, some additional deviation from planned activity is going to be detected along with the cycle is repeated. One portion of control, then, is periodic intervention in the activities of the operation. An important decision is how this intervention takes place. 4. Universality. The actual planning involves each manager and employee in the organization, an organization's overall goal is determined, managers at all levels in order to achieve the organizational goals, make the level of organizational work smoothly, all need to make a plan. displacement 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.