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What is operating profit ? how is it different from Gross
profit ?
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Answer Posted / 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 |
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