Gross Profit

Gross profit is the difference between the money received from selling goods and services and the cost of making or providing them. It ignores any fixed costs, or overheads.

Sales Revenue: The money received from selling goods and services is sales revenue.

Cost of Sales: The cost of making the goods or providing the services is called the cost of sales, since it reflects the variable costs directly related to production, such as raw materials.

Net profit

Net profit is the difference between the amount of money received from selling goods and services and all of the costs incurred in order to make them. Net profit is often considered to be the more important profit figure, as it includes all of the fixed costs and other overheads that a business has to pay.

Average Rate of Return