Profit Flashcards
1
Q
what is cost of sales?
A
cost of sales is the money used to actually make the product this can vary depending on what you make.
2
Q
what is gross profit?
A
profit of sales - amount spent to produce
3
Q
what is net profit?
A
overheads ( VC & FC ) taken away from gross profit
net profit is the amount of money left when all expenses other than cost of sale are deducted from the gross profit figure.
4
Q
what are overheads?
A
Overhead refers to the ongoing operating expenses necessary to running a business, but are not attributed to a specific business activity. Also referred to as “indirect costs.”
5
Q
sales?
A
what the company sales
6
Q
what is capital?
A
money spent by the business on items which should last a long time (assets)
