Lost Profit in Case of Client’s Refusal to Purchase Part of the Contract: Accounting

#4. The Square of Transformation
Lost Profit in Case of Client’s Refusal to Purchase Part of the Contract: AccountingLost Profit in Case of Client’s Refusal to Purchase Part of the Contract: AccountingLost Profit in Case of Client’s Refusal to Purchase Part of the Contract: AccountingLost Profit in Case of Client’s Refusal to Purchase Part of the Contract: AccountingLost Profit in Case of Client’s Refusal to Purchase Part of the Contract: AccountingLost Profit in Case of Client’s Refusal to Purchase Part of the Contract: Accounting

There are two approaches to estimating lost profit: the traditional accounting approach (“full costs accounting”) and the one based on direct costing logic (“incomplete costs accounting”). The article demonstrates that the second approach takes into account additional benefits and costs, that’s why it is economically correct. It shows lameness of legal practice applying “Temporal methodology for determining damage (losses) caused by economic agreements violations”. It proposes to develop methodology for calculating losses in case of client’s refusal to purchase part of customs under a long-term contract.

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