what is the difference between profit and gain?
Answer Posted / kent mikulsky
All the above answers are so terribly wrong if not confusing
to the average person. First, gain and profit are totally
different. The formulae are quite simple! Gain is what you
have left over after you sell something when compared to the
cost price. Profit is what you have left over after you sell
something when compared to the selling price. Example of
Gain: I pay $1.00 for something and sell it for $3.00. The
gain is $2.00. HOWEVER, when expressed as a percentage, the
gain ($2.00) is 200% of the cost. That is, 2 is twice the
value of 1 or 200% !!! GAIN is always a comparison against
cost!! Example of profit: I pay $1.00 for something and sell
it for $3.00. The profit is still $2.00. HOWEVER, when
expressed as a percentage, the profit ($2.00)is 66.67% (2/3)
of the selling price. PROFIT is always a comparison against
the selling price. SUMMARY: Gain will always be greater than
100% and profit will always be less than 100% !!!!!! You
know these things when you're a Polish business man.
Is This Answer Correct ? | 38 Yes | 23 No |
Post New Answer View All Answers
Can profits be known from balance sheet of any company?
What is Issued Capital?
What idea do you have about subprime lending?
Do you think Digital Banking will help the masses in country like India?
Tell something about BASEL III Norms?
Do you have interest in sports? If yes, which is your favorite sport?
Is there any ethical dilemma that the banks face?
What according to you should be done for the growth and development of the economy?
How can i create a business blueprint document for SAP FI, CO , SD Module?
Tell something about prime lending rate?
I am using log-returns in a study, and I use CAPM to predict the expected return. When calculating the expected return from CAPM, how do I approach with log-numbers? Do I use log-numbers for interest rate, market return and beta, or only the first two?
In how many parts 'non-tax revenue' is divided?
A system of 'fiat money' is being used in india. What is that?
What is the significance of ifsc code?
Tell me something about icfai?