What Are Profit Costs?

The rate of profit is the ratio of surplus value to the total capital paid in advance. The rate of profit is a conversion of the rate of surplus value. It is another ratio calculated by different methods of the same amount of surplus value. If p` is the profit rate, m is the profit, and C is the total prepaid capital (c + v), then the profit rate is p` = m / C = m / (c + v). The profit rate is a relative indicator of the profit level of a company over a period of time. The profit margin indicator can not only assess the completion of the enterprise profit plan, but also compare the management level of different enterprises and different periods to improve economic efficiency. Cost profit margin = profit ÷ cost × 100%, sales profit margin = profit ÷ sales × 100%

Cost margin

Margin is the ratio of surplus value to total advance capital

The higher the indicator, the smaller the price paid by the enterprise for profit, the better the cost control, and the stronger the profitability.

Of which: cost expenses = main business costs + other business costs + operating expenses + management expenses + financial expenses

Profit = operating profit + investment income + subsidy income + non-operating income-non-operating expenses

Both individual labor and socially necessary labor can be divided into two parts: production cost and profit. Generally, the two parts of the individual labor of the economy are called the individual production costs and individual profits, respectively, and the two parts of the socially necessary labor are called the average production cost and value profit, respectively.

The average production cost and value profit are the weighted averages of individual production costs and individual profits, respectively. The impact of individual labor on the value of products in economies with different technological levels is achieved through their production weights. The output weight reflects the relationship between the technological level of the economy and the average technological level. Therefore, it can be further considered that the socially necessary labor of a product is composed of production costs and profits determined by the weighted average technological level of the product.

Explanation: The cost profit rate is determined by the tax bureaus of provinces, autonomous regions and municipalities.