Question

What is super profit method

Answer 1

Answer:

Super profit is the excess of average profits over normal profits. Under this method, goodwill is calculated on the basis of super profits. Normal rate of return on the capital employed is compared with the actual average profits to find out the super profits.

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Answer 2

Answer:

super profit is the excess of average profits over normal profits over normal profits .

under the method good well is calculated on the basic of super profits. Normal rate of return on the capital employed is compared with the actual average profits to find out the super profits.

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