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We often hear about businesses making a profit or loss. What is profit? What is loss?
How can you calculate profit?​


Sagot :

Answer:

Net income

In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period

The concept of 'loss of profit' is used in a broad sense, defined as any difference between the actual profits generated by an undertaking and the profits it would have generated in the absence of an infringement.

The formula to calculate profit is: Total Revenue - Total Expenses = Profit. Profit is determined by subtracting direct and indirect costs from all sales earned. Direct costs can include purchases like materials and staff wages.