Managing Finance (Edexcel A-Level Business): Flashcards
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Practise the cards
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Definition of profit
Definition of profit
Money left after all costs deducted from revenue
Gross profit formula
Gross profit formula
Revenue - Cost of sales
Operating profit formula
Operating profit formula
Gross profit - Operating expenses
Net profit formula
Net profit formula
Operating profit - Interest
Gross profit margin formula
Gross profit margin formula
(Gross profit ÷ Revenue) × 100%
Operating profit margin formula
Operating profit margin formula
(Operating profit ÷ Revenue) × 100%
Net profit margin formula
Net profit margin formula
(Net profit ÷ Revenue) × 100%
Two strategies to improve profitability
Two strategies to improve profitability
Raising prices or lowering costs
What is cost of sales
What is cost of sales
Direct costs of producing or purchasing goods
Are profit and cash the same?
Are profit and cash the same?
No, they differ due to credit, timing, assets, etc.