what constitute profit in business?
436193
By keeping close track of costs and revenues, management can often eek out a little more profit by the end of the reporting period.  Running more efficiently is always a goal of most businesses out there.  This helps enhance growth because the profit is growing at the fastest rate possible.
421116
For example:\n\n"Those with money and other assets are able to use their purchasing power to tell producers of goods and services what to produce (and how much). Customers do not necessarily have to buy and, if dissatisfied, can take their business elsewhere, while the profit-seeking sellers find that they can make the greatest profit by trying to provide the best possible products for the price (or the lowest possible price for a given product). In the language of cliché, "he who pays the piper calls the tune.""
870846
Do you mean, "What's better"?  It depends. Are you moral? Then validity is more important. Are you a greedy, no-conscience pig? Then obviously profitability is more important. \n\nTake the drug companies, for example. A good number of them are clearly more interested in profitability than in validity.
1082744
business about $$$. You have to be able to make it money and spend it wisely. To do that, math is needed in order to make predictions, calculations and most importantly-to count profits!
585372
Yes! VAT has nothing to do with profit, if you don't register at the correct value of turnover then you are committing an offence, so register and claim it back, you can't make profit from VAT.\nBut if adjusts your figures then reinvest in the organisation and lose the money into a new piece of kit or to benefit the organisation.
870349
Explain the business.
193028
Cost of Goods Sold \n= Selling Price - Gross Profit\n\nCost of Goods Sold \n= Opening Stock + Direct Expenses - Closing Stock\n\nNow since there is no stock, it would not be appropriate to think in terms of opening and closing stocks.\n\nDirect Expenses is a term relevant to an asset...\n\nAny expenditure that is incurred before brining the asset into usable condition is direct expenditure for the asset..\n\nSince in case of service industry we do not find direct expenses, it would not be possible to use the above ideas for ascertaining the cost of goods sold.\n\nSince there is no goods being sold, it would not be appropriate to use the term "cost of goods sold".\n\nIf one is to decide whether the business is profitable or not, the first figure to look at is gross profit, which gives the basic profit from the set of transactions related to trading activity.\n\nIf for a similar purpose, you intend to find the basic profit from a set of transactions that relate to the service activity, then we make a separate account to which we transfer all the incomes and expenses relating to that activity to ascertain a profit that is an equivalent of gross profit in trading activity.\n\nSome examples of accounts which reveal the profit from a set of transactions....\n\nrelated to consignments -- Consignment a/c\nrelated to joint ventures -- Joint Venture a/c\nrelated to branch -- Branch a/c\nrelated to hire purchase -- hire purchases a/c\n\nsimilarly \nrelated to a service  -- xxx service a/c\n\n\nhttp://www.futureaccountant.com/\n\nhttp://www.schoolingkids.com/
157671
I also use it in economics, usually to find marginals.  For example, marginal cost is equal to the derivative of total cost.  When you set marginal cost equal to marginal revenue you will find the profit maximization point.
841494
as with any business, you would like a growth and profit from everything you do...movies are touch and go. usually the margin is 10% in big production companies. up to 12%. any double-digit gain over cost is considered a success. this helps the company market other projects they feel may not be so profitable...lets them take risks.
255034
It is a summary of all income gained and expenses incurred by a business. The income less the expenses equals profit. If the expenses are higher than the income, it equals a loss.
88115
Business in our society today is often a word used to validate what would be considered outside the business world as very negative behavior.  Take Wal-Mart for example: uses slave labor, helps to destroy the environment and downtowns, treats the employees like dirt, and produces cheap plastic crap.  But it’s just business you know.  That saying is being used a lot lately for immoral behavior.   To me business should mean what you’re doing in the world to make it run smoother and give yourself a place in functional healthy society.  Not the dictionary definition, but I didn’t think you were asking for that.
514825
Anything you do for a Profit is considered a profession.\n As oppossed to working for a company and excepting wages for your service. Your labor talent is of a skill that it's worth a set price per Job. Instead of a set price per hour.
495405
For pure profits...an example being...Africa produces enough food to feed its self...but exports are essential to the economy so they sell there food to rich countries and have their own people suffer.
744489
Profitability can be measured numerous ways.\n\nIt can be measured in ABSOLUTE TERMS.  You can say that Ford is more Profitable than Apple Computer based on the most common measure - net profit to common shareholders. \n\nIt can be used in RELATIVE TERMS based on net margins.  For example, you can say that selling high-end retail goods is more profitable than selling commodity consumer goods - Saks has better profit margins than Walmart). The most common measure is net margin. \n\nIt can be said in RELATIVE TERMS in terms of capital efficiency.  For example, you can use ROI, ROE, ROA or ROIC. The most common measures are ROE (Net profit/Avg. Equity Balance), ROA (Net Profit/Avg. Asset Balance) and ROIC (NOPLAT/Market Value of Equity, Debt and Minority Interests).
463024
I had a discussion about economies of scale about 3 hours ago.  In business, economies of scale means that in small quantities a number, i.e. profit, can be different than in large quantities.  In fact, in business, as your production increases efficiently (the term efficiently is important), your costs per unit decrease.  You take your overhead, which to a certain degree is fixed over a unit of time (usually a month or quarter is considered).  Then you take the overhead number and spread the cost over your manufactured products over that time.  When you manufacture alot, your overhead per item amount is low.  When you manufacture a few, the opposite occurs.  \n\nThis concept can be used in different disciplines and is largely universal.  Large quantities can be more efficiently produced than small quantities.
1023539
I think cost of goods sold is = beginning inventory + purchases - ending inventory.\n\nThen, gross profit is = sales - cost of goods sold.\n\nThen, net profit is = gross profit - operating expenses.
1178851
By selling its products and services at more than they cost to produce which is called profit. Once you have covered all your costs including taxes, and have something extra to take home in the form of money, you gain a reward for your trouble.