Menu

2.4.1 Business calculations - Categories

Drag answers into the correct category. Once all of the answers have been categorised press submit to check your answers.

Gross profit
Net profit
Profit margins
Average rate of return

Answers
Compares firms in same industry
Higher value means more profitable project
Average annual profit over investment
Calculated using sales revenue as denominator
Compares profitability between product lines
Net profit divided by sales revenue
May indicate tight cost control
Assesses use of labour and supplies
Shows profit extracted from total sales
Reflects core profitability before other expenses
Gross profit divided by sales revenue
Indicates value added by custom printing
Total profit divided by project lifespan
Used to judge capital projects
Indicates efficient use of all resources
Deduct all expenses from gross profit
Based on forecast figures only
Assesses overall success of business
Sales revenue minus cost of sales
Log in or sign-up to access the categorising activity



Don't have a login?

You can still revise this topic