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.

Detailed explanation-2: -It is the profit left after the COGS, operating expenses, interest and tax have been subtracted from a company’s aggregate revenue.

Detailed explanation-3: -There are three main measures of profit. These are gross profit, operating profit and net profit.

Detailed explanation-4: -Operating profit is calculated by taking revenue and then subtracting cost of goods sold (COGS), operating expenses, and depreciation and amortization.

Detailed explanation-5: -Net profit (also called net income or net earnings) is the value that remains after all expenses, including interest and taxes, have been deducted from revenue. This is the final figure located at the bottom of the income statement. The net earnings figure includes non-operating expenses such as interest and taxes.