Finance Formulas / July 17, 2018 / Rory Wise
There are many 3 letter acronyms in digital advertising calculations. To be a master of the programmatic ecosystem, you need to know them all and when to use each calculation! Clicks and engagement are what drive the online advertising model. Understanding the calculations behind clicks is essential for your knowledge base.
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.
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