Turnover (net sales) is the total revenue a business receives in a given financial period, e.g. from selling products.
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Cost of sales
(Cost of goods sold) how much it costs to make or produce a product.
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Gross Profit
The profit a business makes on selling its products. Formula for gross profit=Turnover-cost of sales.
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Expenses
Expenses are also referred to as overheads. These are costs that a business must pay in order for it to run. Include all the costs not associated with making the product e.g. administration, wages of staff, advertising, utility bills.
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Net Profit
Net Profit is the money left when all expenses are dedicated from the gross profit. Formula for net profit is: Net profit=gross profit-expenses
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Other cards in this set
Card 2
Front
(Cost of goods sold) how much it costs to make or produce a product.
Back
Cost of sales
Card 3
Front
The profit a business makes on selling its products. Formula for gross profit=Turnover-cost of sales.
Back
Card 4
Front
Expenses are also referred to as overheads. These are costs that a business must pay in order for it to run. Include all the costs not associated with making the product e.g. administration, wages of staff, advertising, utility bills.
Back
Card 5
Front
Net Profit is the money left when all expenses are dedicated from the gross profit. Formula for net profit is: Net profit=gross profit-expenses
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