General Aptitude › Profit and Loss › Question #5349
Single Choice Moderate

QWhat is the difference between gross profit and net profit?

ID: #5349 Profit and Loss 239 views
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#5349Q ID
ModerateDifficulty
Profit and LossTopic
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  • A Gross profit is revenue minus cost of goods sold, while net profit is gross profit minus operating expenses. ✔ ✖
  • B Gross profit is revenue minus all expenses, while net profit is revenue minus only variable expenses. ✔ ✖
  • C Gross profit is revenue minus cost of goods sold, while net profit is revenue minus all expenses. ✔ ✖
  • D Gross profit and net profit are the same thing. ✔ ✖
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Output: Gross profit and net profit are both measures of a company's profitability, but they are calculated differently. Gross profit is a measure of a company's profitability from its core operations (selling products or services) while net profit takes into account all expenses and gives a more comprehensive picture of a company's overall profitability.

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