Gross operating profit, or GOP, describes the current line 'Income After Undistributed Operating Expenses' under the Uniform System of Accounts for the Lodging.
gross operating profit
Positive Operating income will result if gross profit exceeds operating expenses
gross profit
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
Profit is calculated by subtracting operating costs from gross revenues.
Gross profit and operating profits are two different values as gross profit only cater direct expenses to produce goods while operating profit is calculated after deducting indirect expenses and selling and administration overall called operational expenses to arrive at operating profitExample:Sales xxxxLess:Purchases xxxxGross Profit xxxxLess:Selling Expenses xxxxAdmin Expenses xxxxother expenses xxxxOperating Profit xxxxxIf there is no selling, admin or other expenses then gross profit and operating profit will be same.
GOP (gross operating profit) of a hotel can be, for example, 36 % from net revenue. In this case the NOP (net operating profit) will be approx. 11 %. When revenue is not increasing but costs are increasing, in this case NOP will drop, and owners will appear looking sad...
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Sales Les: Cost of goods sold Gross Profit Less: Operating Expenses Operating Income
Cost of goods plus gross profit margin equals to total sales revenue of firm.
nett
net operating income