Calculations:

• What is the definition of 'profit'?

  Revenue minus costs
• Operating costs include salaries, rent, and marketing expenses.


  True
• What is gross profit margin expressed as a percentage of?

  Revenue
• Net profit margin is calculated as (Net Profit / Revenue) × 100
• Profit is calculated as total revenue minus total costs
• What is deducted from gross profit to determine operating profit?

  Operating costs
• A company with revenue of $500,000 and total expenses of $400,000 has a net profit of $100,000.

  True
• Percentage calculations express a value as a proportion of a whole
• Inventory refers to the stock of goods held by a business.

  True
• What is the formula for calculating the percentage of a number?

  (Part / Whole) x 100
• What is the definition of profit in business terms?

  Revenue minus costs
• A loss occurs when a business's costs exceed its revenue
• How are operating costs used to calculate operating profit?

  Deducted from gross profit
• Gross profit is calculated by deducting the cost of goods sold from the revenue
• Net profit margin provides insight into the overall profitability of a business.


  True
• Match the financial term with its definition:

  Profit ↔️ Total revenue minus total costs

  Revenue ↔️ Total income from sales

  Costs ↔️ Expenses incurred to run the business
• Gross profit is calculated as revenue minus the cost of goods sold
• What does the cost of goods sold (COGS) represent?

  Direct costs of producing goods
• What is the formula for calculating finished goods inventory?

  Beginning inventory + Purchases - COGS
• What does COGS represent in financial terms?

  Direct costs of producing goods
• The formula for percentage increase or decrease is ((New Value - Original Value) / Original Value) x 100.


  True
• What is the outcome when a business's costs exceed its revenue?

  Loss
• What is the definition of 'revenue'?

  Income from sales
• Sales are calculated by multiplying the number of units sold by the price
• What is the definition of net profit?

  Income after all expenses
• What does revenue represent in financial terms?

  Total income from sales
• Sales are calculated as the number of units sold multiplied by the price per unit.


  True
• Match the financial metric with its definition:

  Net Profit ↔️ The income after all costs and taxes

  Net Profit Margin ↔️ The percentage of revenue that remains as profit
• Steps to calculate COGS using the formula:

  1️⃣ Beginning inventory

  2️⃣ Purchases

  3️⃣ Ending inventory

  4️⃣ Calculate COGS using the formula
• COGS includes direct costs such as raw materials, direct labor, and manufacturing overhead
• The relationship between inventory and COGS is crucial for calculating profit
• The percentage margin is calculated as (Profit / Revenue) x 100
• Match the financial term with its definition:

  Gross Profit ↔️ Revenue minus COGS

  Net Profit ↔️ Revenue minus all costs

  Inventory ↔️ Stock of goods held

  COGS ↔️ Direct costs of production