This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Over the opening or closing stock valuation, the valuation of stock. Gross profit or gain is the difference between sales and overhead costs of creating a product or a service, payroll, taxation, and the deduction of interest payments. The operating profit earnings before interest and taxes is different. In the company we increase the sale value it also increase the gross sale and it also increase the net sales because the formula of net sales shows that. Net sales = Gross sales – sales of returns and allowances. More Net sales are increase the gross profit with that formula Gross profit = net sales – cost of items sold In that case which companies have more gross profit? That is the better company in comparison to other company....
View Full Document
This note was uploaded on 10/20/2011 for the course BUISNESS ab202 taught by Professor Millazzo during the Spring '11 term at Kaplan University.
- Spring '11