Are gross profit and operating income the same?

Question

0

Nader 0 Comments

Do you know how we can get the operating income from the gross profit? The gross profit is the revenue less the expenses right? What about the operating income? What do we deduct apart from the costs that we deduct to arrive at the gross profit?

1 Answer

score 0 · Answer 1 · 2012-12-02T21:01:12+00:00

Gross profit is revenue less cost of sales. Operating profit is the gross profit plus other operating income (for example property income) less operating expenses (for example payroll). Therefore, gross profit and operating income are not the same the thing.