what is profit?

Answer 1

something that give u benefit and makes u happy...
such as extra income...

Answer 2

i can't believe some of the answers here...

There are different LEVELS of profits...

GROSS PROFIT= Revenue generated from sales minus the cost of purchase or manufacture. For example if you buy toy from a SUPPLIER for £10 and sell it for £15 then your GROSS profit is £5.

Similarly if you are MANUFACTURING toys yourself then your manufactureing cost would include the DIRECT MATERIALS and LABOUR. Direct material would be the stuff you use JUST for the toys and direct LABOUR would be the staff used JUST for making the toys. Say you buy the material for £3 and you pay £7 towards labour then your COST OF MANUFACTURING is £10. If you sell the product for £15 then your GROSS profit is £5.


NET PROFIT: is basically your GROSS PROFIT minus the EXPENSES. For example paying for van delivery, office staffs, electricity bills, depreciation on assests etc are example of EXPENSES.

There are other types of profit as well, but they are not as common as these ones. For example, profit on an asset. Suppose a compnay has a premises that is worth £450,000 and they sell it for £500,000 then their profit is £50,000. But you have to keep in mind that its not very often companies sell their assets.


The above example is for MOST of the businesses. Other business like Banks and other Financial Institutions that deal with money, their profit are based on the Interest, Inflation and Exchange rates. But overall it all comes down to how much you buy it for and how much you sell it for and the cost involved in the transaction.

hope this has been good help

Answer 3

You take all your income from sales and providing services and deduct from that the cost of the goods and all other costs and the result is profit. Gross profit is before tax - net profit after tax. In your accounts list all money in on one side of a profit and loss acount and all money ut on the other side. If you include profit on the side of money going out - the profit and loss sheet balances. A balance sheet is different that shows the equity of a business on one side and assets on the other.

Answer 4

what enron executives call their loot, booty, criminal budget...
or fiscal denials.
a thiefs' income . anyone ever accrue a profit from hard honest
work .....not the people I know.
if I invest a nickel and gain a dollar return what is a nickle now worth is inflation profit by theft? do all American co. s cook the book so just what is profit; a lie ?
no spin no profit...
peace out and enjoy the life

Answer 5

profit is excess cashflow from a business transaction. For instance if I buy 100 XYZ shares for $10 each and sell them for $20 each (without taking brokerage and other costs into account) I would make a profit of $10 per share.

Answer 6

The amount that remains after all costs have been deducted.

From dictionary.com:

pecuniary gain resulting from the employment of capital in any transaction. Compare gross profit, net profit.
b. the ratio of such pecuniary gain to the amount of capital invested.
c. returns, proceeds, or revenue, as from property or investments.

. the monetary surplus left to a producer or employer after deducting wages, rent, cost of raw materials, etc.: The company works on a small margin of profit.

Answer 7

Profit is the revenue you have left after all the bills & running costs have been paid.

Answer 8

a profit is anything above and the left-over portion , after all runnig expenses that have been paid and clear , wages , utilities , insurances , things you have to pay for inorder to keep your business going , that is profit !

: ) LB

Answer 9

revenue - expense = profit

Answer 10

it is something that someone is earning as a reward for his/her labor it may be tangible or intangible depending on the situation or case when to earn the profit.

Answer 11

Anything left over after the utilities and workers have been paid.