What is profit in Russia

In this article, let's talk about what isprofit. Today, in the vast expanses of our great homeland, this concept is quite popular among start-up entrepreneurs, economists and just private individuals. Of course, at first glance, each of the members of modern society, in its own opinion, is sufficiently knowledgeable in the matter 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 of the entrepreneur engaged in the sale and manufacture of furniture, will be a certain amount calculated, after the total income from the sale, for example, stools, will be taken away all the costs of its production.

Types of profit

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 difference between net sales incomeproducts and the cost of goods and services sold together 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, penalties and credit rates forms a net profit indicator. And their marginal profit unites them. It does not take into account operating and tax costs, reflecting only real figures obtained after the sale of products or services, taking into account the costs of their production or provision. Forming thus an indicator accounting profit.

Shadow economy

However, economic theory and modernpractice, especially in the context of a market exchange of values, in our country often does not converge. The penniless past experienced by our compatriots and citizens of the closest countries, as well as the adult conscious and able-bodied generation that grew up in the conditions of constant corruption and the absence of any order, made certain elements of economic theory incompatible with real accounts at the enterprises. It is connected, of course, with almost legal corruption and bureaucratic arbitrariness in the territory of Russia. Since the conditions of survival of modern enterprises force their founders and managers to organize their 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 above indicators of replenishment of capital, in our country the most important role is played by the index of economic profit unknown in developed countries of the modern world. It is a numerical expression of the difference between net profit and the costs of bribing officials, expenses related to extortion, raiding and other methods of earning power by people popular in our country. That's what it is. profit in Russia.