Rachunek kosztów pracy właściciela w rachunku ekonomicznym małej firmy
THE OWNER LABOUR COST ACCOUNTING IN THE COST AND PROFIT ANALYSIS OF A SMALL FIRM

Summary/Abstract: The methodology of economic profit measurement in small firms, which do not have a full accounting system in place, is an important theoretical and practical problem. Without the knowledge about the level of profit, the entrepreneur is not capable of making informed decisions about the amount of funds which can be withdrawn from his/her business for private purposes without depleting its capital. In the present article, the methodology of estimating the cost of the owner’s labour provided to his/her own firm and a concept how to include such a cost in the cost and profit analysis of the business are presented. The inclusion of owner labour cost is necessary to reliably measure economic profit generated in a small business.

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