Profit and expenses

• What are expenses 


  These are the indirect costs of the enterprise , they are not involved in making the product
• What are some examples of expenses

  Wages

  rent

  heating and lighting

  delivery vehicles

  business insurance
• What are expenses some times referred as

  Enertprises expenditure
• What is net profit

  The money remaining after deducting expenses from gross profit
• How do you calculate net profit

  Gross profit - expenditure
• What does the enterprise need to do if their gross profit is low or negative

  Increase sales revenue by increasing the number of sales or prices of products

  reduce costs of sales by buying cheaper raw materials and buying in bulk
• What does a business have to do when net profit is negative

  Increase revenue from sales , reduce the cost of sales , reduce expenses