6. Rate of profit estimated or expected on capital employed
(a) Super Profit
(b) Average Profit
c) Normal Rate of Return
(d) None of the above
Answers
Answered by
1
Average profit mark as Brainlist
Answered by
0
Answer:
Average Profit
Explanation:
Average profit means the average of profit earned over a specific number of previous years. The rate of ordinary profit is not relevant to average profit as we do not need to calculate normal profit while computing average profit.Average profit means the average of profit earned over a specific number of previous years.Average profit can be calculated independently from the profits of previous years.Average capital employed is not considered while computing average profit.Average profit calculation is easy and concise.
The formula used to calculate the average benefit is
AP = Number of years / Profit of total number of years
SPJ2
Similar questions