ECONOMICS (CBSE/UGC NET)

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: -Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Profit, which is typically called net profit or the bottom line, is the amount of income that remains after accounting for all expenses, debts, additional income streams, and operating costs.

Detailed explanation-3: -It is a dollar figure calculated by taking the total revenue and subtracting the total expenses. If the figure is positive it is considered to be ‘profit. ‘ If the figure is negative, then that is considered to be a ‘loss.

Detailed explanation-4: -In short, gross profit is your revenue without subtracting your manufacturing or production expenses, while net profit is your gross profit minus the cost of all business operations and non-operations. Your net profit is going to be a much more realistic representation of your company’s profits.

Detailed explanation-5: -Gross profit. Gross profit is the amount of money remaining after subtracting the cost of goods sold (COGS) from the total income from sales. Operating profit. Operating profit includes both variable and fixed costs. Pre-tax profit. Net profit. Net profit margin. Reduce costs. 22-Dec-2022