JAMB - Commerce (2025 - No. 30)
The net profit is calculated as
sales less purchases
gross profit less expenses
gross profit less purchases
sales less expenses
Explication
Net profit is calculated as gross profit less expenses. Gross profit is the profit a company makes after deducting the costs
associated with making and selling its products, or the costs associated with providing its services. Expenses include items like
administrative costs, interest, taxes, and other costs not included in the cost of goods sold.
associated with making and selling its products, or the costs associated with providing its services. Expenses include items like
administrative costs, interest, taxes, and other costs not included in the cost of goods sold.