Operating profit
Operating profit
Glossary of business
Definition of operating profit
Operating profit is the profit (or surplus) that the firm has made after overheads (indirect costs) have been deducted from the gross profit. So, to get the operating profit you need to deduct the cost of sales from the turnover (giving the gross profit) and then deduct the level of overheads. The resulting surplus is the operating profit.
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Terminology about business
Job world
Definition and meaning of operating profit
Meaning of operating profit
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