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22 October, 03:45

Is gross profit or net profit more important to consider when you're deciding how

cuccessful and profitable a company is? Why? Explain.

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Answers (1)
  1. 22 October, 05:31
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    In this context, the most suitable answer is Gross profit.

    This is because gross profit calculates the revenue from the basic and main business operation and shows if the company's main business is able to make money.

    When you look at the net profit, it takes into account various costs like tax, finance costs, administration, losses, etc. that might reflect costs that are difficult to be controlled by the company.

    this however, does not mean u should not pay attention to the net profit too.
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