Finance Formulas / July 6, 2018 / Alyvia French
Economic profit is not recorded on a company’s financial statements nor is it required to be disclosed to regulators, investors or financial institutions. Meanwhile, accounting profit is a widely used performance measurement to indicate the overall financial success of an organization. Accounting profit measures the actual cash outlays and inflows, while economic profits incorporate a "what if" analysis. For this reason, an entity may report an accounting profit but realize an economic loss because resources could have been utilized better.
CPC stands for Cost Per Click and is an important metric for marketers to understand when analyzing the performance of their digital campaigns and arbitraging opportunities. The formula to calculate cost per click is the cost to the advertiser divided by the amount of clicks.
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