BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is equal to gross profit
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can be calculated using formula, NP=M-OE
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is the reduction in the selling price of merchandise due to many reasons such as to increase sales, to face stiff competition, to encourage purchase in bulk, to dispose old, damaged/obsolete stocks
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is the amount (if any) which remains after the cost of goods and operating expenses have been paid.
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Detailed explanation-1: -What is net profit? Net profit is the amount of money your business earns after deducting all operating, interest, and tax expenses over a given period of time. To arrive at this value, you need to know a company’s gross profit. If the value of net profit is negative, then it is called net loss.
Detailed explanation-2: -Net profit is gross profit minus operating expenses and taxes.
Detailed explanation-3: -Typically, net income is synonymous with profit since it represents the final measure of profitability for a company. Net income is also referred to as net profit since it represents the net amount of profit remaining after all expenses and costs are subtracted from revenue.
Detailed explanation-4: -Net Profit = Total Revenue – Total Expenses To calculate Net profit of a company, its total expenses are deducted from the total revenue it generates.
Detailed explanation-5: -The cost of goods sold includes items like raw materials, necessary labor, or even taxes on your building. Net profits, on the other hand, are your total revenue, minus COGS and all operating expenses-that is, administrative expenses, non-operating expenses like taxes or interest, and any expenses related to selling.