Economic profit is the difference between the amount from the sale of products and its cost as a result of the activities of the enterprise minus costs. Profit is a reflection of net income, shows the effectiveness of the organization, allows you to form a budget and has a stimulating function, since it is a source of capital gains.
It is necessary
Calculator, data on variable and fixed income and expenses
Instructions
Step 1
The economic profit at the enterprise is multiplied if the benefits obtained from the use of long-term resources exceed the costs of obtaining them. In determining economic profit, the cost of all interest-bearing liabilities, including interest on loans, is taken into account. Therefore, the accounting profit is always higher than the economic profit, but it is the economic profit that is the criterion for the efficiency of the enterprise and the use of resources.
Step 2
The financial result of the enterprise is determined by comparing income and expenses and is expressed as an indicator of economic profit. The calculation of indicators is based on the turnover of the organization.
Step 3
As a result, if you add up the cost of production, add all production costs, costs and the amount received is subtracted from the amount from the sale of products, then the difference will be the economic profit of the organization.
Step 4
The main task of the enterprise is to lead to the maximization of economic profit through a system of costs, use of resources, determination of lost income and identification of hidden costs. The calculation of the accounting profit of the enterprise differs in that the implicit costs are not taken into account in the reports.
Step 5
Looking at the marginal revenue metrics of an organization, you can see how profitable an increase in output will be.
Step 6
Net profit is a part of the economic profit remaining after taxes, settlements with creditors, charitable contributions, payments for rent of land resources and buildings. It is distributed for the needs of the organization: capital accumulation, personnel training, replenishment of internal social funds and income of owners. It also includes extraordinary income and expenses arising from accidents, fires and natural disasters. Insurance claims relate to extraordinary income.
