Profit is the business achievement of entrepreneurs, the comprehensive reflection of the business effect of enterprises and the concrete embodiment of the final achievement of enterprises. Profit is an important symbol to measure the advantages and disadvantages of enterprises, and it is often an important indicator to evaluate the performance of enterprises.
What are the types of big profits?
From the perspective of economics: although it is not obvious in some analyses, it should be noted that economic profit includes opportunity cost, and entrepreneur profit is usually positive, but the word economic profit can be positive or negative.
From the accounting point of view: profit can be subdivided into gross profit, net profit and pre-tax profit for financial analysis to understand the performance of enterprises. Gross profit is sales revenue MINUS sales cost, and gross profit plus extra income MINUS other expenses is pre-tax net profit.