Practical Use Of Economic Profit To Assess The Effectiveness Of Activities

Abstract

The efficiency of a commercial enterprise is usually estimated in terms of absolute profit indicators and relative profitability indicators according to the accounting financial statements on the basis of explicit costs. In accounting, implicit costs are not considered, respectively, economic profit is not analyzed. The indicator of economic profit has been known in economic theory for a long time, but it has not received a practical application and place among the indicators of economic analysis. Accounting for lost profits based on the average rate of return on invested capital is used in the analysis of any type of market. In the current conditions of development of the Russian economy, with the current level of competition, we consider it necessary to introduce the indicator of normal and economic profit and the corresponding indicators of profitability in the practice of economic analysis. The article presents the results of a study of the use of indicators of normal and economic profit and profitability to assess the effectiveness of organizations, justifies the need to use microeconomic indicators in the practice of accounting and economic analysis to increase the reliability of the results of the analysis. The research will contribute to the achievement of the goal of increasing the reliability of conclusions based on the results of economic analysis by solving the problems of increasing the applied orientation of indicators of economic theory and improving the methodology of economic analysis of financial results.