Give one difference between super profit and average profit
Answers
Answered by
1
Average Profit means average of past years profits. It is calculated by dividing Total Profit of past years by Number of Years, i.e. . It is used for calculating goodwill under the Average Profit Method, Super Profit Method and Caplitalisation Method.
Super Profit is calculated by deducting Normal Profits from the Average Profits.
Super Profit is calculated by deducting Normal Profits from the Average Profits.
Similar questions