What Is the Difference between Gross Profit and Net Profit? Answer Gross profit is the total amount of sales from selling your good and services.net profit is the money left after you deduct the all cost endured. Gross profit-costs=net profit. 3 Additional Answers Gross Profit is defined as the total amount of profit that is made from sales. It is the total revenues minus the total cost of goods sold. Net Profit is the gross profit minus all operating expenses. It is also known as the bottom line. In accounting, gross profit or sale profit is the difference between sales and cost of sales. Cost of sales is the purchase price of the goods to be sold together with the cost of getting them ready for sale. Net profit is what remains after all expenses except for profit tax have been charged to the gross profit; these may include staff salaries, rent, rates, motor expenses, auditors remuneration etc. The difference between gross profit and net profit is that; gross profit is the difference between the revenue and the cost of goods or services ,whereas net profit is the profit that one gets after all the deductions have been made. Net profit is usually calculating by reducing gross profit by the total amount of incurred expenses. Q&A Related to What Is the Difference between Gross Profit... What is the Difference between Gross profit Net profit? Gross Profit = Sales - Cost of Sales and Direct cost. Net Profit = G.P - Indirect Expenses. By Cyril Joseph. wiki.answers/Q/ What_is_the_Difference_b... What Are Net Profit & Gross Profit? In the simplest form, gross profit, or GP, is measured as revenue minus cost of goods. This is often referred to as profit margin. Businesses typically attempt to maintain certain ehow/ about_6639143_net-profit-gross... What is the difference between the gross profit margin and net profit margin of a firm? If I buy lemons and sugar for 10 cents and sell you lemonade for $1.00, my gross profit is 90 cents. If I sell 100 lemonades today, my gross is $90 today. Gross is the difference quora/What-is-the- difference-betwee... How to Calculate Gross Profit? Gross profit is the total revenue subtracted by the cost of goods that generated the revenue. Can be put in simple words, Gross profit = Net sales - cost of goods sold, where
Posted on: Sun, 09 Mar 2014 10:15:52 +0000
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