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Is gross profit or net profit more important to consider when you're deciding how

cuccessful and profitable a company is? Why? Explain.

asked
User Mesco
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2 Answers

1 vote

Answer:

Net profit is more important to consider when you are deciding how successful and profitable a company is. Net profit takes into account all expenses and what your net profit is.

Step-by-step explanation:

answered
User Nosuic
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9.3k points
4 votes

Answer:

In this context, the most suitable answer is Gross profit.

This is because gross profit calculates the revenue from the basic and main business operation and shows if the company's main business is able to make money.

When you look at the net profit, it takes into account various costs like tax, finance costs, administration, losses, etc. that might reflect costs that are difficult to be controlled by the company.

this however, does not mean u should not pay attention to the net profit too.

Step-by-step explanation:

answered
User Maxim Tulupov
by
8.2k points

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