Profit rate is the ratio of surplus value to all prepaid capital, and profit rate is the transformation form of surplus value rate, which is another ratio calculated by different methods for the same surplus value. If P' stands for profit rate and c stands for all prepaid capital (c+v), then profit rate P'= M/C = M/(C+V). Profit rate is a relative index reflecting the profit level of an enterprise in a certain period. Profit rate index can not only assess the completion of enterprise profit plan, but also compare the management level between enterprises and in different periods to improve economic benefits. Cost profit rate = profit/cost × 100%, and sales profit rate = profit/sales × 100%.
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