how to calculate economic profit and accounting profit
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how to calculate economic profit and accounting profit

In 1946, the famous British economist J.R. hicks, in value and capital, developed the concept of income into a general concept of economic gain. He argues that the real purpose of computing revenues is to make people aware of the amount of money they can spend without making them poorer. Accordingly, he gave a generally accepted definition of "the maximum amount of consumption that a person can spend at the end of the term, at the same level of prosperity". Hicks's definition, though primarily for personal gain, applies to businesses as well. In the case of the enterprise, according to this definition, the enterprise income can be understood as the maximum amount that can be allocated in the enterprise cost accounting period under the same amount of capital at the end of the term and the beginning of the period. "If there is no allow most of the European Union oriented financial services agreement, the financial sector accounts for about 7% of GDP, but about 10% of tax revenue and 14% of the exports, may be affected by the special Britain will stay there," the report said. Under the theoretical framework of the theory, the theory of commodity market equilibrium and the monetary market equilibrium of Keynesian theory are unified. Marx's theory of interest rate decisions from the perspective of the source and essence of interest, taking into account the institutional factors in the role of interest rate decisions of interest theory, its theoretical core is the interest rate is determined by the average profit margin. Marx believed that under capitalism, interest is a part of profit and a form of conversion of surplus value. Alpesh Paleja, chief economist at CBI, said: "although sales have grown in the past few months, the basic trading conditions for retailers remain difficult. We expect that the pressures on households to actually pay will continue for a while, so retailers still face challenges. "