|
|
| Line 1: |
Line 1: |
| − | In [[Management Control|Management Control]]@mbi there are two different concepts for profit:
| + | Different models of profit |
| − | * [[The economic concept of profit|The economic concept of profit]]
| |
| − | * [[The accounting concept of profit|The accounting concept of profit]]
| |
| − | | |
| − | {| class="wikitable"
| |
| − | !The economic concept of profit
| |
| − | !The accounting concept of profit
| |
| − | |-
| |
| − | |Cash Based
| |
| − | |Accrual based
| |
| − | |-
| |
| − | |Future Oriented
| |
| − | |Hindsight oriented
| |
| − | |-
| |
| − | |Decision Support
| |
| − | |Reporting to the outside world
| |
| − | |-
| |
| − | |Time Value ([[WACC|WACC]])
| |
| − | |Only interest taken into account (not full cost of capital)
| |
| − | |-
| |
| − | |Multi period
| |
| − | |One period
| |
| − | |-
| |
| − | |}
| |
| − | The cost of capital is ''severely'' underestimated in the accounting concept of profit.
| |
| | [[Category:finance]] | | [[Category:finance]] |
| | | | |
Revision as of 18:38, 27 August 2020
Different models of profit
