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Describe how profit is calculated.

2 Answers

4 votes

Answer:

profit = total revenue - total expenses

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User Kevin C
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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

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User Sentenza
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