net and gross profit


C

connection80

Hello,

what is the spacific difference between net profit and gross profit?
thanks
 
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Y

Yes Baby

Hello,

what is the spacific difference between net profit and gross profit?
thanks
gross is before deductions
net is what you is left with after deductions.
 
T

Troy Steadman

gross is before deductions
net is what you is left with after deductions.
It could be, but in accountancy:

Sales less Direct Costs = Gross Profit

(Direct Costs are cost directly linked to your Sales - if Sales of
sausages halve then purchases of sausages also - in theory - halve)

Gross Profit less Overheads = Net Profit

(Overheads are costs *not* direclty linked to Sales - if Sales of
sausages halve then you still have to pay your Electric, Gas, Rates,
Accountant, and so on...)
 
T

Thomas Titmus

Hello,

what is the spacific difference between net profit and gross profit?
thanks
Doh! Your really researched this, didn't you?


Tom
 
Y

Yes Baby

Troy Steadman said:
It could be, but in accountancy:

Sales less Direct Costs = Gross Profit

(Direct Costs are cost directly linked to your Sales - if Sales of
sausages halve then purchases of sausages also - in theory - halve)

Gross Profit less Overheads = Net Profit

(Overheads are costs *not* direclty linked to Sales - if Sales of
sausages halve then you still have to pay your Electric, Gas, Rates,
Accountant, and so on...)
hmmmm, I don't see the word accountancy in the question............
 
T

Troy Steadman

hmmmm, I don't see the word accountancy in the question............
Maybe not but your answer doesn't make any sense:

Don't you apply deductions to work out your gross profit?
 
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A

Alan Ferris

Maybe not but your answer doesn't make any sense:


Don't you apply deductions to work out your gross profit?
The other deductions :)

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
( ) . ( )
(")_(")
 
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