It is determined by the money get from sales, cost of stock (if one sell product/s) and of course all the expenses incur. Keeping a close eye on each of these will ensure are maximizing the profit in the business. It is the excess of returns over expenditure in a transaction or series of transactions, the excess of the selling price of goods over their cost; it is the net income usually for a given period of time, the ratio of profit for a given year to the amount of capital invested or the valu
Answer (1)
Profit is the extra money a business keeps after paying the overhead costs and expenses.Costs and Expenses of Running a BusinessCost of making or buying productsSalaries and wagesBills like electricity, water, and rentInsurances, government fees, and permitsMarketing and promotional expensesTransportation expensesProfit = Sales – (Expenses + Cost of goods)If the profit is high, it means the business is doing well. If it’s low or negative, the business might be spending too much or not selling enough.
