Operating profit
What Operating profit means in Economics B A-Level, as defined for Pearson Edexcel.
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: Pearson Edexcel
Deducts operating expenses, such as overheads like rent and administrative salaries, from gross profit, showing the profit from core business activities.
Topics that use Operating profit
- Profit and loss (Pearson Edexcel A-Level)
Related terms
- Financial performance
- Gross profit margin
- Market entry
- Market exit
- Operating profit margin
- Profit for the year margin
- Profitability
- Revenue and costs
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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