explain the difference between accounting profit and economic profit
Back to Top

explain the difference between accounting profit and economic profit

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. Activity-based costing (ABC) is an efficient management technique for assigning and governing the overhead costs. Overhead expense analysis and assignment can be produced more accurate through the use of ABC processes for a wide range of products, for product expenses and profitability analysis as well as for appropriate distribution and control over the overheads. In a broad sense, interest rates are not limited to bank interest itself, but also to bond markets, and even to share dividends, another way of stating dividends. In fact, in the United States, the proportion of direct financing is far greater than the indirect financing, corporate bonds, debt-financed and publicly traded shares is a very important means of financing, at this time all can use the concept of interest rates for analysis.