profits Flashcards
(8 cards)
1
Q
What is profit?
A
The reward or return for taking risks and making investments.
2
Q
what is gross profit?
A
what is remaining after cost of production, expenses. Overheads aren’t included. (Revenue-cost of sales)
3
Q
what is operating profit?
A
Profit from normal operations of the business
4
Q
what is profit of the year/ profit after tax/ net profit?
A
What’s remaining after decisions and additions of other items such as finance income, costs, and tax
5
Q
what is a profit margin?
A
a profit margin compares profits to sales
6
Q
formula for gross profit margin=?
A
(Gross profit/ sales revenue) X100
7
Q
operating profit margin=?
A
(operating profit/ sales revenue) X100
8
Q
Net profit margin=?
A
(net profit/ sales revenue) X100
