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What is the difference between gross profit, net profit & contribution Margin?

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تم إضافة السؤال من قبل ahmed nabil , Lecturer in the special status , Registration books
تاريخ النشر: 2014/03/12
Yusuf Dalal
من قبل Yusuf Dalal , General Accountant. , Gmamco Contracting LLC

Gross Profit =  Sales  + Opening Stock + Purchases + Direct Expenses - Closing Stock

 

Net Profit = Gross Profit Less Operating Expenses (Indirect Expenses) - Depreciation + Indirect Incomes

Contribution Margin =  Total Sales Less Total Variable Cost.

 

MUHAMMAD YASIN GUJJAR
من قبل MUHAMMAD YASIN GUJJAR , DEPUTY DIRECTOR FINANCE-PUNJAB PROVINCE , NATIONAL COMMISSION FOR HUMAN DEVELOPMENT

GP:Sales-CGS

NP: GP-all expenses relating to business

CM: Sales-Variable portion of CGS

Ali Elhaila
من قبل Ali Elhaila , مفتش حسابات , وزارة المالية(ولاية النيل الابيض)

gross profit comes when we deduct operating expences but net profit comes after deduct all expences .

mohammed fazal ur rahman
من قبل mohammed fazal ur rahman , safety officer , Saudizaas

Gp=sales Net profit=sale Cm=sales less variable cost

Abdul Rauf
من قبل Abdul Rauf , Finance Manager , Copier International Trading

Gross Profit: All the Direct Expenses deduct from Sales ( Material Used + DIrect Labour + Overhead cost) which is direct related to product. 

Net Profit: Sales Minus Direct Cost - Indirect Cost - Finance Cost - Tax + other Income = Net Profit

Contribution Margin: Sales Minus Variable Cost 

Sameer Khan
من قبل Sameer Khan , Financial Accountant , Centro Salama by Rotana

GP: Sale Price - Selling Cost (Direct Cost attributed to goods sold)

NP: GP - Operating Expenses (Indirect Cost attributed to goods sold)

CM: Sale Price - Variable portion of Selling Cost. (Selling Cost comprises of Fixed cost and variable cost)

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