What do the letters in the formula stand for:

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That is, in reality, the company did not have the funds to build the houses for which they took advances.

This is what technical bankruptcy looks like. If two or three clients demand a refund at the same time, such technical bankruptcy will become real. No company that controls only cash flow and does not consider real income and expenses is insured against such a miscalculation.

Important : A company knows the correct amount of algeria whatsapp number data its profit only when it compiles a profit and loss (P&L) report. If there is no such report, then the profit can only be called hypothetical.

We answer questions about the anti-money laundering law and advise you on what to do if you encounter restrictions in the course “The most important things about 115-FZ” .
If profit is not money in an account, then what is it? Let's figure it out.

What does the profit formula look like : Q (P – Vc) – Fc.


Q — the number of units of goods or services sold;
P — selling price or revenue;
Vc — variable costs;
Fc — fixed costs.
This formula makes it clear what to influence in order to manage the amount of profit.

Revenue minus variable costs is the margin. Roughly speaking, you bought materials for 100 rubles, and sold the chair that was made from them for 200. Your margin is 100 rubles.