Solution-Briefly outline the two components of profit

Briefly outline the two components of profit

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Reference no: EM132759566

Question - Two accountants were discussing the performance of a retail business that earned revenue of $1,000,000 by selling goods and services that it had acquired for $600,000.

A said "We can afford to pay a dividend of $400,000."

B said "We should consider the current cost of inventory before deciding on dividends."

Required -

1. Explain the perspectives of A and B, using financial and physical capital.

2. Briefly outline the two components of profit under current cost accounting.

Reference no: EM132759566

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Briefly outline the two components of profit

Reference no: EM132759566

Reference no: EM132759566

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