Types of Profit: Gross, Operative, Net
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Questions and Answers

What is subtracted from revenue to calculate Gross Profit?

  • Cost of Goods Sold (correct)
  • Selling and Administrative Expenses
  • Research and Development Costs
  • Operating Expenses

    • Which type of profit calculation includes both blended and natural profit?

  • Operating Profit
  • Net Profit
  • Operative Profit (correct)
  • Gross Profit

    • What is the purpose of calculating different types of profit?

  • To determine the company's market value
  • To evaluate the effectiveness of marketing strategies
  • To identify the most profitable departments or products (correct)
  • To calculate the company's tax liability

    • Which type of profit is considered the most accurate representation of a company's profitability?

    <p>Net Profit</p> Signup and view all the answers

    What is the relationship between Gross Profit and Cost of Goods Sold?

    <p>Gross Profit is the difference between Revenue and Cost of Goods Sold</p> Signup and view all the answers

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