Diff between Net profit & Gross profit?

Answer Posted / govinda_mahato05

Gross profit is the difference between Sales and Cost of Sales. Cost of Sales is the purchase price of the goods to be sold together with the cost of getting them ready for sale.


Net profit remains after all expenses except for profit tax have been charged to the gross profit. These may include Staff salaries, rent, rates, motor expenses, auditors' remuneration etc.

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