profit
Definition
Best known measure of the success of an enterprise, it is the surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. Profit is reflected in reduction in liabilities, increase in assets, and/or increase in owners' equity. It furnishes resources for investing in future operations, and its absence may result in the extinction of the firm. As an indicator of comparative performance, however, it is less valuable than return on investment (ROI). In economics, total costs must include a cost to cover the normal profit for the firm. Also called earnings, gain, or income.
profit is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
profit appears in the definitions of the following terms:
complementary products pricing,
autonomous investment,
bottom-up pricing,
factor income,
rational choice theory (RCT),
Bertrand game,
contribution,
overapplied overhead,
labor economics,
opportunity cost
and
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