Every company in the market sees its main objective making a profit. It is necessary to meet both its own and the needs of employees and also for further development of production. Making any transaction, each entrepreneur calculates all the risks, and most importantly – possible income. In these calculations the gross profit-this is the main indicator.
The Concept of income in trade expresses the price value of the surplus product, which was created by its employees as this and other areas involved in the production of this commodity.
Gross profit – this is an indicator that can measure level or in the total value. This is the most important criterion, which characterizes the final result of the activity.
The Ratio of profit to turnover shows the level of profitability relating to sales of goods. This indicator shows the costs of treatment, the effect obtained from the use of fixed assets, as revenues result from using labour, turnover of goods. Profitability characterizes the efficiency of the company in the total concept.
Gross profit-this is the final result of the activities of the company. It can be not only positive. Sometimes you end up with a loss as a result of excessive production costs, or unexpected costs when selling goods.
Simply put, the profits can be shown as the difference between total gross income and all the costs of treatment. The amount thus obtained is called "gross profit". It is the financial outcome of the activities. Gross income – the total amount received in the production process.
Recommended
"Knowledge is light and ignorance is darkness": the value, meaning and alternatives
There are some sayings that would seem to need no explanation, such as “teaching & ndash; light and ignorance – darkness”. But some still do not understand their meaning. But not only for such people is written by our article. I...
What was invented by Mendeleev for the army. The history and fate of the invention
D. I. Mendeleev was a brilliant Russian scientist-polymath, who made many important discoveries in various fields of science and technology. Many people know that he is the author of “Fundamentals of chemistry" and the periodic law of chem...
The origin of the Slavs. The influence of different cultures
Slavs (under this name), according to some researchers, appeared in the story only in 6 century ad. However, the language of nationality bears the archaic features of the Indo-European community. This, in turn, suggests that the origin of the Slavs h...
However, the costs contain all the costs of production. Some of them happen at the expense of the profits. Therefore, if we consider all the production costs, it was necessary to summarize costs and other costs that are not included. The result is economic costs, which fully reflect the actual production costs. Naturally, this figure will be higher than the costs of treatment.
Depending on the expense categories to distinguish economic profit. Gross sales – the difference between the income earned and all costs, and economic – this ratio is total revenue and economic costs.
The Difference between them will correspond to the amount that it costs, not included in distribution costs.
So the ultimate goal of any activity of each company is obtaining the greatest possible economic profit. It shows the true result of the production and its return.
Analysis of the business involves the use of other indicators. These include the financial result from the sale of goods, fixed assets, net profit, income from any activity not related to primary production, and others.
The Financial result from implementation of the indicator, which is obtained by the subtraction of profit from sales distribution costs. The end result in this case could be not only income but also a loss.
Profit on sale of fixed assets is the difference between the sale and residual value. At its basis, and take into account the rate of inflation, increasing the second figure by the corresponding index.
Income may be received by the company from the sale of securities, bonds or dividends.
Profit – this is the main indicator used in assessing the activities of the enterprise. It is necessary not only to cover the costs and meet the needs of the company. The profit is used to generate funds for various purposes.
Article in other languages:
AR: https://tostpost.com/ar/cars/7586-what-is-the-exam-in-the-traffic-police.html
BE: https://tostpost.com/be/a-tamab-l/13550-shto-zh-uya-lyae-saboy-ekzamen-u-d-bdr.html
DE: https://tostpost.com/de/autos/13553-was-ist-eine-pr-fung-in-der-verkehrspolizei.html
ES: https://tostpost.com/es/coches/13560-que-es-un-examen-en-el-gbdd.html
HI: https://tostpost.com/hi/cars/7592-what-is-the-exam-in-the-traffic-police.html
JA: https://tostpost.com/ja/cars/7588-what-is-the-exam-in-the-traffic-police.html
KK: https://tostpost.com/kk/avtomobil-der/13553-b-l-b-ld-red-emtihan-gibdd.html
PL: https://tostpost.com/pl/samochody/13540-co-to-jest-egzamin-do-policji.html
PT: https://tostpost.com/pt/carros/13534-o-que-um-exame-de-pol-cia-de-tr-nsito.html
TR: https://tostpost.com/tr/arabalar/13556-nedir-bu-s-nav-traf-k-polisi.html
UK: https://tostpost.com/uk/avtomob-l/13550-scho-zh-yavlya-soboyu-spit-v-gibdd.html
ZH: https://tostpost.com/zh/cars/8252-what-is-the-exam-in-the-traffic-police.html
Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
Related News
The first jet train in the Soviet Union: history, characteristics, photos
In the early 70-ies to employees of all-Union scientific-research Institute of car building (VNIIP) and Yakovlev design Bureau was tasked with creating a domestic trains, capable of speeds of 200 km/h. However, before proceeding t...
Essay on the painting "the Lacemaker" Tropinin
this material is devoted to a description of the painting "lace" Tropinin. Though this work is not world famous, but it has important features, which further will be discussed.a short biography of the artistVasily Andree...
Domestic policy of Alexander 3
From the first days of the Board's internal and external policies of Alexander 3 was aimed at the revision of the main undertakings of Alexander 2. And the main engine of this policy was the D. A. Tolstoy, when some liberal ...
Cell wall and its role in the life of a plant cell
the Cell wall is a hard and thick shell that is located over the cytoplasmic membrane. This element is characteristic of cells of bacteria, fungi and plants. In addition to protecting cells, hard shell performs a number of other i...
The formula and methods for determining the needs of the enterprise in circulating assets
Every company strives to increase the efficiency of use of its capital. Depends on the profitability of the organization, its market value and the stable development in the future. For this reason, the relevant services of each co...
Veliky Novgorod, University Yaroslav-the-Wise (NovSU): address, faculties, passing scores
In Veliky Novgorod is a well-known University in Russia-Novgorod state University. Yaroslav The Wise. It is popular among students, as it has a high efficiency. The school is in the top 6 of the best universities of the northweste...
Comments (0)
This article has no comment, be the first!