Profit (accounting)

{{About|profit in accounting and business|profit in economics and political economy|Profit (economics)}}

File:Stock-indices-2020crash+recovery.svg]]

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business). Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production. There are several profit measures in common use.

Income formation in market production is always a balance between income generation and income distribution. The income generated is always distributed to the stakeholders of production as economic value within the review period. The profit is the share of income formation the owner is able to keep to themselves in the income distribution process. Profit is one of the major sources of economic well-being because it means incomes and opportunities to develop production. The words "income", "profit" and "earnings" are synonyms in this context.

Other terms

Footnotes

References

{{cite book|last=Courbois|first=R.|author2=Temple, P.|title=La methode des "Comptes de surplus" et ses applications macroeconomiques|publisher=160 des Collect,INSEE,Serie C (35)|year=1975|pages=100}}
{{cite journal|last=Craig|first=C.|author2=Harris, R.|title=Total Productivity Measurement at the Firm Level|journal=Sloan Management Revie W|issue=Spring 1973|pages=13–28|year=1973}}
{{cite journal|last=Genesca|first=G.E.|author2=Grifell, T. E.|title=Profits and Total Factor Productivity: A Comparative Analysis|journal=Omega. The International Journal of Management Science|volume=20|issue=5/6|pages=553–568|year=1992|doi=10.1016/0305-0483(92)90002-O}}
{{cite journal|last=Gollop|first=F.M.|title=Accounting for Intermediate Input: The Link Between Sectoral and Aggregate Measures of Productivity Growth|journal=Measurement and Interpretation of Productivity|publisher=National Academy of Sciences|year=1979}}
{{cite journal|last=Hulten|first=C. R.|title=Total Factor Productivity: A Short Biography|journal=NBER Working Paper No. 7471|date=January 2000|doi=10.3386/w7471|doi-access=free}}
{{cite journal|last=Hulten|first=C. R.|title=Growth Accounting|date=September 2009|journal=NBER Working Paper No. 15341|doi=10.3386/w15341|doi-access=free}}
{{cite conference|first=D.W.|last=Jorgenson|author2=Ho, M.S.|author3=Samuels, J.D.|title=Long-term Estimates of U.S. Productivity and Growth|publisher=Third World KLEMS Conference|year=2014|location=Tokyo|url=http://www.worldklems.net/conferences/worldklems2014/worldklems2014_Ho.pdf}}
{{cite journal|last1=Kurosawa|title=An aggregate index for the analysis of productivity|journal=Omega|volume=3|issue=2|pages=157–168|year=1975|doi=10.1016/0305-0483(75)90115-2|first1=K}}
{{cite journal|last=Loggerenberg van|first=B.|author2=Cucchiaro, S.|title=Productivity Measurement and the Bottom Line|journal=National Productivity Review|volume=1|issue=1|pages=87–99|year=1982|doi=10.1002/npr.4040010111}}
{{cite book|last=Pineda|first=A.|title=A Multiple Case Study Research to Determine and respond to Management Information Need Using Total-Factor Productivity Measurement (TFPM).|publisher=Virginia Polytechnic Institute and State University|year=1990}}
{{cite book|last=Riistama|first=K.|author2=Jyrkkiö E.|title=Operatiivinen laskentatoimi (Operative accounting)|publisher=Weilin + Göös|year=1971|pages=335}}
{{cite book|last=Saari|first=S.|title=Productivity. Theory and Measurement in Business. Productivity Handbook (In Finnish)|publisher=MIDO OY|year=2006a|pages=272}}
{{cite book|last=Saari|first=S.|title=Production and Productivity as Sources of Well-being|publisher=MIDO OY|year=2011|pages=25|url=http://www.mido.fi/Index_tiedostot/Artikkeli%202011.htm}}
{{cite conference|first=S.|last=Saari|title=Productivity. Theory and Measurement in Business|publisher=European Productivity Conference|year=2006|location=Espoo, Finland|url=http://www.mido.fi/Index_tiedostot/Productivity%202006.htm|format=PDF}}

Profit (accounting)

Other terms

See also

Footnotes

References

Further reading