IGCSE Calculations Revision: Profit and Gross Profit Calculations Flashcards
1
Q
Define cost of sales
A
the materials used to make a product/service
2
Q
How do you calculate gross profit?
A
sales revenue - cost of sales = gross profit
3
Q
How do you increase gross profit?
A
By increasing sales revenue
By decreasing cost of sales
4
Q
Give examples of expenses.
A
Insurance, salaries of staff, rent etc.
5
Q
How do you calculate profit?
A
gross profit - expenses = profit
or
sales revenue - total expenses = profit
6
Q
How do you calculate retained profit?
A
profit - dividends = retained profit
7
Q
Define dividends.
A
the part of the money earned by the business that is given to its investors/shareholders
8
Q
Define retained profit.
A
profit to be reinvested in the business.
9
Q
A
10
Q
A
11
Q
A
12
Q
A
13
Q
A
14
Q
A
15
Q
A
