Question

When calculating the average rate of profit made by a company, the correct mean to use is the?

Answer 1

Answer:

The profit earned by a business during previous accounting periods on an average basis is termed as the Average Profit. It takes into account the average profits for the past few years and fixes the value of goodwill as to many year's purchase of this amount. Average profit maybe simple or weighted in nature.

Step-by-step explanation:

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Answer 2

Answer:

Step-by-step explanation:

harmonic mean