What is profit in Russia

In this article we will talk about what profit is. Today, in the vast expanses of our great homeland, this concept is quite popular among aspiring entrepreneurs, economists and just private individuals. Of course, at first glance, each of the members of modern society, in their own opinion, is quite knowledgeable about the issue of earnings. But what is profit in modern economic theory? This concept, as well as a large number of other terms of economic theory associated with an increase in the volume of capital, really only confuses ordinary citizens. So that such a profit in fact? The concept is a quantitative indicator of the difference between revenue and cost of sales. That is, the profit from an entrepreneur engaged in the sale and manufacture of furniture will become a certain calculated value after all expenses for its manufacture are taken away from the full income from the sale, for example, stools.

Profit Types

Although profit is a fairly simple and intuitive term, but, like other system elements that increase capital, it has certain forms, the source of which is the concept of gross profit - the values ​​of the difference in net income from sales of products and the cost of goods and services sold along with operating costs . However, the indicator does not take into account the costs of taxes, fines and other deductions. The difference in gross profit and deductions for taxes, fines and credit rates forms an indicator of net profit. And their marginal profit unites . It does not take into account operating and tax costs, reflecting only the real figures obtained after the sale of products or services, taking into account the costs of their manufacture or provision. Thus forming the indicator accounting profit.

Shadow economy

However, economic theory and modern practice, especially in the conditions of a market system of exchange of values, often do not converge in our country. The non-cash past experienced by our compatriots and citizens of neighboring countries, as well as an adult conscious and able-bodied generation that grew up in conditions of constant corruption and the absence of any order, made some elements of economic theory incompatible with real-life bookkeeping at enterprises. This is, of course, connected with almost legal corruption and official arbitrariness on the territory of Russia. Since the survival conditions of modern enterprises force their founders and managers to organize labor activities in such a way that its financial side does not completely reflect the completeness of the rules and laws of the modern generally accepted financial system. Thus, along with the aforementioned indicators of capital replenishment, an indicator of economic profit that is unknown in the developed countries of the modern world plays a crucial role in our country. It is a numerical expression of the difference between the net profit and the cost of bribing officials, the costs associated with extortion, raiding and other popular ways of earning powerful people in our country. Here is what profit in Russia.