Question

Name the difference between Revenue from Operations and Operating Profit.

पर्याय

• Gross Profit

• Operating Profit

• Operating Cost

• Net Profit before Tax

Answer 1

Operating Cost

Explanation:

The relationship between sales and operational earnings shows that Operating Profit is calculated by subtracting all day-to-day business expenses, known as the Operating Cost, from the total net sales, or Revenue from Operations. The Operating Cost includes both the direct manufacturing costs (Cost of Goods Sold) and indirect operational expenses like office administration, selling, and distribution costs. Therefore, the exact mathematical difference between what a company earns from its core operations and its operational profit is the total cost incurred to run those operations.