Profit Concept as a Performance Measurement
Date of Submission
Master of Science in Accounting
Call No. at the Univ. of New Haven Library
AS 36 .N29 Acc. 1987 no. 4
Among the goals of a successful enterprise are increasing sales, having good reputation in the market, seeking to find cheap and experience labour, and many others. All of these are desirable achievements and objectives. They are not enough to guarantee the continued existence and growth of an enterprise.
The major measure of the success of any enterprise is whether or not it is able to exist and expand. To achieve this it must generate profits. Accountants and economists have shown that there is an important relationship between the rate of profit and the rate of growth.
Profit concept is one of the most significant principles which plays a vital role in evaluating the performance to determine the effectiveness and efficiency for any enterprise.
The profit concept has a different meaning and a different viewpoint, and as a result of that we may have accountancy, economic, and taxable profit. This principle can be implied in both Capitalist and Socialist economies in order to evaluate the enterprise performance, but the conceptual frame for this concept is different in each economy, because each economy has its economic philosophy which control the determined factors to the profit equation.
Many people believe that the profit concept does not work in Communistic or Socialist society, and the economic planning is only implied. In fact, this concept still plays its role but in another way to determine and the purpose from it.
Chaker, Mohammad Naim, "Profit Concept as a Performance Measurement" (1986). Master's Theses. 69.