Profit (A level BS)
From WikiTextbook
Is calculated using the following formula:
- revenue - costs
There are different types of profit:
| Gross profit – is the revenue minus the direct costs. | Sales revenue
- Costs of sales = Gross Profit | |
| Operating profit – is the gross profit minus the indirect costs. | - Overheads
= Operating profit | |
| Pre-tax profits – the operating profits plus any one-off items, e.g., redundancy payments. | + One-off items
= Pre-tax profits | |
| Profits after tax – the profit that is left after corporation tax has been paid. | - Tax
= Profits after tax | |
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