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Give help, make this book go viral, in the interest of students, graduates, everybody, even professors can learn a lot from it and each manager will improve performance.
It takes much effort to get through exercises in the traditional way, sales minus costs, where sustainable means of production are treated differently than units of trade goods. It causes a lot of headaches. Students, protest against your trainers!
Ultimate Solution. The adage ‘profit is an opinion’ is no longer true.
The Way to Easy Profit Measurement. A scientific breakthrough.
The Profit Formula®
Profit = (CASH -/- NVD)(1 -/- quota) -/- SVD
Basic Equation of Profit Measurement
Integration of nominalism (NVD) and substantialism (SVD), both general and specific, and with the exact calculation of the burden of taxation. This equation includes each and every capital maintenance concept and does not exclude a single concept of value. Anybody can measure any reasonable profit over a randomly chosen period, of any length. The Profit Formula® is exceptionally user-friendly. Working with this profit-meter is simple.
‘Profit = Total Sales -/- Total Costs’ is not good enough.
Depreciation and amortisation, interest costs and tax burden are exogenous variables within the old formula – these cost items happen to be outcomes of separate calculations with several arbitrary choices – whereas they all are endogenous variables within the new formula, ipso facto separate calculations are not needed anymore. A tremendous amount of money can be saved, including for cases of historical cost accounting (measuring fiscal profit). The budgets of many accounts departments can be cut drastically.
Up until now managers have run their companies from the back seat.
From sheer necessity, lacking a decent financial standard.
At long last The Profit Formula® puts them (and you) in the driver’s seat.
The fiscal profit figure as well as the profit figure to be published can be calculated easily by means of The Profit Formula®, which ignores costs. Subsequently, various cost items – because the required reports naturally need to be complete – can still be determined, in fact now more easily since the figure on the bottom line is already available. Firstly all cost items which are at hand aggregated and secondly the already known profit figure that is measured by The Profit Formula®, ending up in one item in between i.e. ‘remaining costs all together’ that simply is falling from the sky.