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The difference between profit margin and markup is that profit margin is sales minus the cost of goods sold. The price of producing one additional unit of good. What Is The Difference Between Gross And Net Profit Profit is what is left after deduction of all expenses from revenue. What is the d…

So even if he has made an accounting profit in his restaurant business. A accounting profit is the firm s total revenue less its explicit costs b economic profit to the economist is the total revenue of a firm less explicit and implicit cost. Accounting Profit Vs Economic Profit Definition And E…

Economic profit is obtained when the revenue exceeds the opportunity s cost. For example marketing promotion and research expenses are consider as operating expenses under accounting principle to calculate accounting profit. Https Encrypted Tbn0 Gstatic Com Images Q Tbn 3aand9gcraapmvofadak3ymtn…

For example in the balance sheet the base of total asset in income statement the base of net sales and in cash flow statement a base of total cash flows can be taken and all the line items will be disclosed in percentage form which can be adequately used for doing internal analysis or for doing ex…

The formula for vertical analysis of income statement can be derived by dividing any item in the income statement by the total sales and express it in terms of percentage. This analysis gives the company a heads up if cost of goods sold or any other expense appears to be too high when compared to …