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No
Opportunity by definition is the cost of the next best alternative not taken by the business.
To give an example, if a firm makes £100,000 net profit , the opportunity cost could be for example, the interest not gained because the money has been invested in to the business rather than put in the bank.
Profits are worked out as follows:
Revenue - Cost of Sales (this is how much the raw materials cost to produce the output)
= Gross Profit
Then deduct all expenses such as Overheads (i.e. water bill, rent, rates etc)
and deduct any depreciation charges or other expenses
You are then left with Net Profit (before tax)
You then deduct tax payable on the profit
then deduct any money you are goin to pay to shareholders
Then you are left with Net Profit after Tax (also called Retained Profit)
Hope that makes sense
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∙ 16y ago
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Is income tax variable cost?
No, income tax is calculated after all other fixed and variable costs are considered and deducted from gross sales. That number is your Net Profit, and income tax is calculated based on that number (not on the number of units one produces).
What were Burger King sales profit last year?
Gross Profit 7,905.20 hamburgersIn Millions of USD
Sales revenue minus cost of goods sold?
Gross Profit
How do you work out net profit?
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. we get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
What do you get when you deduct cost from revenues?
Deducting direct costs from revenues is gross profit while deducting all other remaining cost we get net profit.
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
What is the profit that remains after the operating costs have been deducted from the gross profit?
nett
How could net profit be greater than gross profit?
It is impossible for net profit to be greater than gross profit. Gross profit is the income made before any expenses. Net profit is less once all expenses have been deducted.
After gross profit is calculated operating expenses are deducted to determine?
net operating income
Gross profit and net profit?
Gross and Net profit are virtually the same. They both calculate EBT, earnings before taxes - all overhead and salaries.
What should be the disclosure requirement in case of depreciation in the Profit and Loss Account of a company?
Depreciation is an expanse on fixed asset for the period ended and is recorded in profit and loss accounts at year ended. it will come in operating expenses and should be deducted from gross profit of the company.
What is the sale if gross margin mark-up is 40 of cost?
Could be anything, 40 is gross profit after costs of goods sold is deducted.
How to calculate Gross profit of total factory cost?
Gross profit of any company is calculated by adding all of the accumulated income from any source before expenses (such as taxes, salary, utilities, rent, insurance, materials, etc.) are deducted.
What is the difference between operating profit and net profit?
Operating Profit is earnings BEFORE interest and taxes are deducted but AFTER overheads and other indirect costs are deducted from your Gross Profit. Once you have this Pretax Profit you deduct from your Operating profit any one off items and interest payable to arrive at Net Profit. It is then at this stage that tax is calculated and deducted from the Net Profit to arrive at Retained Earnings procedure - dividends So; Sales/Turnover - COGS/COS = GP - Expenses (but not 1 off/interest payments) = OP - 1 off items and interest = NP
What does net of taxes mean?
It simply means what's left after tax is deducted from an amount. Net of tax = Gross Amount - Tax
Should amounts of government's contribution nps deducted from gross salary?
NO. Gross salary includes Govt's contribution towards NPS.
What is the difference of gross profit and gross margin?
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
