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Describe how profit is calculated.

User Psihodelia
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2 Answers

4 votes

Answer:

profit = total revenue - total expenses

User Kevin C
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5 votes

Answer:

formula is: total revenue – total expenses = profit.

Profit is calculated by deducting direct costs, such as materials and labour and indirect costs (also known as overheads) from sales. The fact that the stock wasn't paid for immediately is not relevant when calculating profit.

Step-by-step explanation:

hopw this helps

User Sentenza
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4.8k points