Managing Business Activities Flashcards
Amortisation
The writing off of an intangible asset
Cost of sales
The direct costs of a business
Exceptional costs
A one-off costs such as a large bad debt
Gross profit
The difference between revenue/turnover and cost of sales
Gross profit margin
Gross profit expressed as a percentage of revenue/turnover
Operating Profit
The difference between gross profit and business overheads such as selling and administrative expenses
Operating profit margin
Operating profit expressed as a percentage of revenue/turnover
Profit of the year/net profit
The difference between operating profit and interest and exceptional items
Profit of the year/net profit margin
Net profit after tax expressed as a percentage of revenue/turnover
Statement of comprehensive income
The financial document showing the companies income and expenditure over a particular time period, usually one year
Revenue or turnover
The total income of a business resulting from sales of goods or services
