Average annual profit
What Average annual profit means in Business GCSE, as defined for AQA.
Definitions of Average annual profit
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Average annual profit in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Total profit over the project's life divided by the number of years of the project's life.
Calculated by dividing total profit by the number of years.
Topics that use Average annual profit
- Financial terms and calculations (AQA GCSE)
Related terms
- Average rate of return
- Average Rate of Return (ARR)
- Break-even
- Break-even chart
- Break-even level of output
- Break-even output
- Break-Even Point
- Costs
Using Average annual 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.
Practise Business questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge