By DeVry University
December 22, 2021
4 min read
December 22, 2021
4 min read
Accounting profit is a widely used metric that helps accountants identify a company’s net profit, or earnings after explicit costs such as labor, raw materials, production and marketing are subtracted from its total income. Accounting profit represents actual profit, rather than the more theoretical calculations of economic profit.
Accounting profit paints a clearer picture of how a company is doing and how financially sustainable its operations are. With this number, accountants are able to determine whether a business is growing or if it’s losing money, and how quickly its profits are increasing or decreasing compared to a previous accounting period, such as a fiscal quarter or year.
In this article, we'll dive deeper into what accounting profit is by comparing it with the concept of economic profit. We’ll also go over how to calculate accounting profit and look at a few real-world scenarios for its use as we explore the following sections:
By Degree Level
By Area Of Study
By Location
Featured Programs
Tuition & Expenses
Degrees & Programs
Tuition & Financial Aid
Admissions
Student Experience
In New York, DeVry University operates as DeVry College of New York. DeVry University is accredited by The Higher Learning Commission (HLC), www.hlcommission.org. The University’s Keller Graduate School of Management is included in this accreditation. DeVry is certified to operate by the State Council of Higher Education for Virginia. Arlington Campus: 1400 Crystal Dr., Ste. 120, Arlington, VA 22202. DeVry University is authorized for operation as a postsecondary educational institution by the Tennessee Higher Education Commission, www.tn.gov/thec. Naperville Campus: 1200 E. Diehl Rd., Naperville, IL 60563. Unresolved complaints may be reported to the Illinois Board of Higher Education through the online compliant system https://complaints.ibhe.org/. View DeVry University’s complaint process https://www.devry.edu/compliance/student-complaint-procedure.html Program availability varies by location. In site-based programs, students will be required to take a substantial amount of coursework online to complete their program.
© DeVry Educational Development Corp. All rights reserved.