37.Economic profit (不同于accounting profit)can be calculated asC) total revenue - explicit costs - implicit costs.38.The most common type of firm in the United States is theB) proprietorship.(独资企业)39.Corporations account forB) the largest proportion of business revenues generated in the ...
a. the income or reward accruing to a successful entrepreneur and held to be the motivating factor of all economic activity in a capitalist economy b. (as modifier): the profit motive. 5. a gain, benefit, or advantage vb to gain or cause to gain profit [C14: from Latin prōfectus adv...
The economic profit will be calculated as follows: Economic Profit = 100,000 – 80,000 – 10,000 = $10,000 Economic profit is also called abnormal profit. Normal Profit Note that the difference between the accounting profit and economic profit is the implicit costs. This is the normal ...
Accounting profit is calculated as income and expenses. Therefore, the accounting profit is based on the accrual basis, economic profits need to deduct the investment cost based on accounting profit, but this is not the actual content, so the economic profit is not the basis of accrual basis,...
Economic value added (EVA®) is calculated as net operating profit after taxes minus:A. a charge for equity capital.B. capital expenditures.C. a charge for total capital. 正确答案:C 分享到: 答案解析: EVA = NOPAT – (C% × TC), where NOPAT is a firm’s net operating profit after...
The economic profit is the gap between the gain from the selling of a product and the cost of all the products. Economic profit can be used for...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough...
Profit for a Firm: The profit for a firm may be determined from the perspective of an accountant or economist. The costs are usually categorized into explicit costs and implicit costs to calculate the economic profit and accounting profit. ...
As you can see, Project #2 generates a positive economic profit, relative to Project #1. Learn more in CFI’sFinancial Modeling Courses. Additional Resources Thank you for reading CFI’s guide to Accounting Profit vs Economic Profit. These additional CFI resources will be helpful: ...
Economic ProfitAccounting Profit A theoretical financial figure based on assumptionsActual profit (net income) is determined Isn't part of financial statements or reportedCalculated according toGAAPand reported to IRS Used for internal analysisUsed by investors to analyze a potential investment ...
Zero economic profit is also known as normal profit. Like economic profit, this figure also accounts for explicit and implicit costs. When a company makes a normal profit, its costs are equal to its revenue, resulting in no economic profit. Competitive companies whose total expenses a...