Operating Profit is that part of the revenue which is left after deducting operating cost/expenses from the Gross Profit. Operating expenses/cost include all the cost incurred on all operative activities of the business. It is also known as Earning Before Interest Read More …
Net Profit (N.P.) is that part of the revenue which is left after deducting total cost/expenses from the total revenue or indirect cost/ expense from the Gross Profit. Indirect expenses/cost include all the cost incurred on the administrative expenses, selling Read More …
Gross Profit (G.P.) is that part of the revenue which is left after deducting all direct cost/expenses from the Net Sale. All direct cost/ expense means Cost of Goods Sold (COGS). COGS include all the cost incurred on the production Read More …
Incomes mean the amount earned by the business from the business operation and other activities. Income is also known as Revenue. In other words, The amount earned from Sale of goods and services and other non-operation works. These incomes are Read More …
The amount spent to enjoy benefits from goods and services is known as Expenses. In this article, we will cover the meaning and types of Expenses. What are Expenses It means the amount spent by the business for running the Read More …
The sale means giving the ownership of any goods or assets, by receiving/will be received the predetermined price of them. It may be in cash or credit. In credit means, when business sold goods or assets without receiving the predetermined Read More …
Purchase means getting the ownership of any goods or assets, by paying the predetermined price of them. It may be in cash or credit. In credit means, when business buys goods or assets without paying the predetermined price of them, Read More …
Expenditure means that amount which has spend or will be spent by business on the purchase of goods and to avail the services. These can be in cash or on credit or in the fund. Examples of expenditure for business Read More …
Cost of Goods Sold (COGS) is the amount of expenses that are directly related to the process of the manufacturing of the final product or cost of goods purchases and direct expenses incurred on it but indirect expenses are not Read More …
Inventory meaning that Material or Items which are owned by the business for further production of goods and for sale. To understand the meaning of Inventory more simply, first we have to divide the business into two types. These are Read More …