Meaning of Profit- Profit means different things to different people. “The word profit has the different meaning to businessmen, accountants, tax collectors, workers, and economists and it is often used in the loose polemical sense that buries its real significance”[Joel Dean, Managerial Economics, Asia Publishing House, 1960 p3]. In General sense ‘profit’ is regarded as income accruing to the equity holders, in the same sense as wages accrue to the labour; rent accrues to the owner of rentable assets; and interest accrues to the money lenders. To a layman, profit means all income that flows to the investors. To an accountant ‘profit’ means the excess of revenue overall paid-out costs including both manufacturing and overhead expenses. It is more or less the same as ‘net profit’. For all practical purposes profit or business, income means profit in accountancy sense plus non-allowable* expenses. Economist’s concept of profit is of ‘Pure Profit’ called ‘economic profit’ or ‘just profit’. Pure profit is a return over and above the opportunity cost, i.e., the income which a businessman might expect from the second best alternative use of his resources.