Naslov
ACCOUNTING APPROACH VERSUS ECONOMIC APPROACH IN DETERMINING PROFIT OF SMALL FAMILY DAIRY COMPANY

Autori
Ermacora, Renata

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
7th International Scientific Symposium „Economy of eastern Croatia – vision and growth” / Prof.dr.sc. Mašek Tonković, A. ; Izv.prof.dr.sc. Crnković, B. - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2018, 996-1004

Skup
7. međunarodni znanstveni simpozij: Gospodarstvo istočne Hrvatske – vizija i razvoj = 7th International Scientific Symposium: Economy of Eastern Croatia – Vision and Growth

Mjesto i datum
Osijek, Hrvatska, 24.05.2018. - 26.05.2018

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
model of accounting profit, model of economic profit, SMEs, Croatian Zagorje

Sažetak
In order to analyze the usage of the success potential of a company, different approaches and associated models are used with the aim to determine the level of economic and financial success or failure of their business operations. One of the most common measures in determining the level of business operations success is certainly achieving a satisfactory level of profit (profitability), since it represents one of fundamental managerial problems. Equally, the achieved profit still represents a dominant economic category used by external and internal users in the decision- making process, especially when it comes to SMEs. However, it is justified to expect that the level of achieved profit determined by using the model of accounting profit is different from its level determined by using the model of economic profit. While the model of accounting profit is ex-post oriented and does not include the cost of capital, the model of economic profit is ex-ante oriented and includes the cost of capital. Accordingly, the aim of this paper is to analyze the achieved profit of a small family company within the dairy industry in the Croatian Zagorje area by implementing both the model of accounting profit and the model of economic profit in order to define their specific differences and to perceive their value for external and internal users. For the purposes of this paper, scientific and professional references, financial statements and available additional information were analyzed. Based on the results obtained from the qualitative and quantitative analyses of available information conducted and by using methods of deduction and induction, analysis and synthesis and comparisons, it can be concluded that the model of economic profit is justifiably put in the superior position in relation to the model of accounting profit. Also, the research results showed that there was a need for caution in using such information since it can undoubtedly have an influence on determining future success potential of a company.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
Indeksiran u EBSCOhost i EconPapers

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