What is operating profit ? how is it different from Gross
profit ?
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Answer / md.rasheed
Gross profit= Sales-Cost of goods sold
Cost of goods sold is nothing but
(Opening stock+Purchases+all direct expenses-closing stock)
Operating profit=Gross profit-Operating Expenses
it is also called Net Profit.
Operating expenses are nothing but all Indirect Expenses
like Salaries, Telephone, Stationary and so on.
| Is This Answer Correct ? | 21 Yes | 3 No |
Answer / shilpalatha
Sales -Cost of goods sold =Grossprofit,
Grossprofit-operating expenses =operating proft
Operating expenses such as ( salary ,rent , depreciation)
| Is This Answer Correct ? | 23 Yes | 6 No |
Answer / col ashwani
Net profit= Op profit-(Dep+Int+Tax)+other incomes-other
write off.
Op profit is not equal to net profit.
Net profit is used in balance sheet not the op profit
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / col ashwani
Net profit= Op profit-(Dep+Int+Tax)+other incomes-other
write off.
Op profit is not equal to net profit.
Net profit is used in balance sheet not the op profit
op profit= Gross Profit-(AE+SE+ME or all conventional
expenses + Capitalized expenses)
Gross Profit=Sales-Cost of goods sold
Cost of goods sold is nothing but
(Opening stock+Purchases+all direct expenses-closing stock)
| Is This Answer Correct ? | 4 Yes | 1 No |
operating profit is the profit which is derived from
operating expenses means all indirect expenses which
were incurred durin the operation
gross profit is the profit which is derived before
deduction of tax then it will be treated as gross profit
formulaes- sales - cost of goods sold =gross profit
c.o.g.s = op stock + purchases + all direct exp
gross profit - op exp = op profit
| Is This Answer Correct ? | 7 Yes | 5 No |
Answer / dasarisravani
operating profit
Company profit that remains after subtracting all expenses
associated with selling its products or services.
subracts from grossprofit all business expenses-telepnoe
biss,interenet access charges,shipping expenses
gross profit
what u make to sell the goods-what it cost to sell the
goods,incl manufacturing exp'
| Is This Answer Correct ? | 0 Yes | 0 No |
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