Which accounting software caluculate economic profit
Economic profit is the profit from producing goods and services while factoring in the alternative uses of a company's resources. For example, the implicit costs could be the market price a company could sell a natural resource for versus using that resource. A paper company owns a forest of trees.
Click to see full answer
How do you calculate economic profit from a table?Economic Profit = Total Revenue – Explicit Costs – Implicit Costs
- Economic Profit = $500,000 – $435,000 – $60,000.
- Economic Profit = $5,000.
What is economic profit example?
Economic Profit Example
A has left his job to start a restaurant business. He was a lawyer and was earning $100,000 per year. However, he felt more inclined towards food and fun, so he started his business. In the first year, he made an accounting profit of $50,000.
What is economic profit formula?
Economic Profit = Total Revenue – (Explicit Costs + Implicit Costs)
What is economic profit and how is it calculated?
An economic profit or loss is the difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs. In calculating economic profit, opportunity costs and explicit costs are deducted from revenues earned.
How do you find the economic profit?
Economic Profit = Total Revenue – Explicit Costs – Implicit Costs
- Economic Profit = $500,000 – $435,000 – $60,000.
- Economic Profit = $5,000.