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What is operating profit ? how is it different from Gross
profit ?
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Answer Posted / ravindra
operating profit is the profit which is derived from
operating expenses means all indirect expenses which
were incurred durin the operation
gross profit is the profit which is derived before
deduction of tax then it will be treated as gross profit
formulaes- sales - cost of goods sold =gross profit
c.o.g.s = op stock + purchases + all direct exp
gross profit - op exp = op profit
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