themanager.org | Search |
|
In general, the term ‚profit’ stands for the difference between revenue and costs. However, for one and the same activity, profit does not necessarily have to be the same number under different points of view. Different accounting standards (like US GAAP and IAS) or special regulations for taxation make organizations display different profits in financial statements for different purposes. On top of that, profit from the accountant’s point of view is not equal to profit from the economists point of view. This difference is not based in different principles on what to evaluate how, but in fundamentally different understandings of costs and profits. This article will describe the differences of profit in accounting and economics without discussing details of cost theory. Please find an updated and extended version of this article at eddielogic.com ------------------- Some Links for your own research:
|
|
||||||||||
|
up ñ | back to publications - management models | back to themanager.org |
If you have questions or comments to our website, do not hesitate
to contact us (comments and questions are always welcomed):
webmaster2 AT reckliesmp.de
Copyright © 2001 Recklies Management Project GmbH
Status: 01. Juli 2015