ECONOMICS

Detailed explanation-1: -Net profit reflects the amount of money you are left with after having paid all your allowable business expenses, while gross profit is the amount of money you are left with after deducting the cost of goods sold from revenue. You need to calculate gross profit to arrive at net profit.

Detailed explanation-2: -Gross profit represents the income or profit remaining after the production costs have been subtracted from revenue. Revenue is the amount of income generated from the sale of a company’s goods and services.

Detailed explanation-3: -Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Revenue, also known as gross sales, is often referred to as the “top line” because it sits at the top of the income statement.

Detailed explanation-4: -Gross profit is the financial gain of a company after deduction of the costs necessary to manufacture and distribute its goods or services. These costs are referred to collectively as the cost of goods sold.

Detailed explanation-5: -It is the difference between a company’s total revenue and total expenses. It is equal to the company’s total revenues minus total expenses, including COGS, operating expenses, taxes, and interest. This number is used to determine how much money a company makes after it has paid for production-related costs.