Business A-Level
operating profit
What operating profit means in Business A-Level, as defined for AQA.
Definition of operating profit
Check what you remember
Read the wording for your board, then hide it and explain operating profit in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Takes off the overheads such as rent, salaries and marketing, so it reflects how the business is run day to day.
Topics that use operating profit
- Setting financial objectives (AQA A-Level)
Related terms
- control and motivation
- overtrading
- return on investment
- cash flow objectives
- gross profit
- profit for the year
- profit margins
- revenue, cost and profit targets
Using operating profit in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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