Net Profit
What Net Profit means in Business GCSE, as defined for AQA, OCR, Pearson Edexcel.
Definitions of Net Profit
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Reference: Pearson Edexcel
A comprehensive measure of financial performance found by deducting all other operating expenses and interest from the gross profit.
The amount of money left over after all operating expenses, interest, and taxes have been deducted from revenue.
Gross profit minus all other operating expenses.
Topics that use Net Profit
- Business planning (AQA GCSE)
- Revenue, costs, profit and loss (OCR GCSE)
- Business calculations (Pearson Edexcel GCSE)
Related terms
- Cost of sales
- Gross profit
- Accuracy and limitations of forecasting
- Average rate of return
- Average Rate of Return (ARR)
- Break-even
- Business plan
- Cash Flow
Using Net Profit in the exam
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