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标题: economic profit [打印本页]

作者: richer    时间: 2011-7-11 18:23     标题: economic profit

Why only subtract economic depreciation but not accounting depreciation from total revenue when calculating the economic profit?
作者: scr879    时间: 2011-7-11 18:23

Accounting Depreciation depends on the choice of the accounting method. It is just a accounting charge and may not be economically significant. While economic depreciation is the real decline in value of your PP&E.




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