Q: What is the difference between gross profit and net profit?
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A
Gross profit is revenue minus cost of goods sold, while net profit is gross profit minus operating expenses.
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B
Gross profit is revenue minus all expenses, while net profit is revenue minus only variable expenses.
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C
Gross profit is revenue minus cost of goods sold, while net profit is revenue minus all expenses.
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D
Gross profit and net profit are the same thing.
C
Answer:
C
Explanation:
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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