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Economic profit (also called utility) is a term used to designate the benefits obtained from an economic process or activity. It is rather imprecise, since it includes the positive result of such activities measured both in material or “real” form and in monetary or nominal form. (See below). Consequently, some differentiate between profit and gain.
From a general point of view economic profit is an indicator of the creation of wealth or generation of goods or value in a nation’s economy. This is not always the case for individuals (see below).
Economic analysis, beginning with the physiocrats, generally divides economic profit into two related but not equivalent notions: material profit – conceptualized as the increase in physical economic goods or wealth of a nation – and pecuniary profit or monetary wealth of individuals.
Note that the concept of profit includes the remuneration of both capital (including profit on money invested or shareholders’ profit), natural resources (including rent) and labor (including wages for the “contribution of labor that the entrepreneur makes to his enterprise”, i.e., remuneration for the management or entrepreneurial function).
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The real value of the profit is the general regime used to calculate the value of the corporate tax, i.e. if the company does not opt for another way of calculating the tax, the tax regime adopted will be the real profit. This calculation regime is considered the most complex of those existing in the tax system.
The first step in accounting for actual profit is to determine the total turnover of the company in the period, i.e. to calculate the amount received from the company’s activities in the sale of its products or services. From this amount, expenses and costs incurred by the company for its operation, such as maintenance and payment of employees, must be deducted.
The CSLL must be accounted for each three-month period, based on the actual profit for the corresponding period. The contribution rate payable will be calculated on the actual profit for the period.
The company that opts for the actual profit may also be entitled to some tax benefits, such as the right to deduct from income tax the amounts used to finance cultural projects, health programs and donations, among others.
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Nevertheless, the benefits are real: while there is little evidence that microfinance sets substantial numbers of poor people on the path to riches, it does help the poor save, smooth consumption, deal with emergencies and expand existing businesses.
Nevertheless, the benefits are real: while there is little evidence that microfinance sets substantial numbers of poor people on the path to riches, it does help the poor save, smooth consumption, deal with emergencies, and expand existing businesses.
However, there is growing evidence and documented examples that accessible websites bring real benefits not only to users with disabilities, but also to site owners and users in general.
Regarding the profit margin, the actual profit of the related trader could not be used, as the relationship between the exporting producer and the related trader made these prices unreliable.
For the profit margin, the actual profit of the related trader could not be used as the relationship between the exporting producer and the related trader made these prices unreliable.
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The various changes that took place in the way things were made and produced during the industrial revolution involved not only industry, but also commerce, finance, social structure, education and agriculture or agricultural production.
The fact of including agricultural production in a scenario of decisions and economic development implies that greater attention should be paid to this sector, taking into account key elements that come together in its production systems, especially the cost factor, whose usefulness today is not only for processing and service companies, but also for the agricultural company or business.
In this regard, Martínez (1995) points out that there are costs that limit decision making and must therefore be taken into account in any organization, including agricultural enterprises. These include quantifiable or economic costs and non-quantifiable costs; the sum of these two types of costs is called real costs. But there are other costs that are also important in the decision-making process, such as relevant costs, also known as differential costs, irrelevant costs, fixed costs, variable costs and opportunity costs, among others of equal significance.