Revenue Minus Direct Expenses

This profitability tells how much revenue will become profitable in a company.

Revenue minus direct expenses. Operating income is sales revenue minus operational direct and indirect cost. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi. Gross margin would equal revenue minus cogs which is 500 000 or 2 million 1 5 million. Net income is gross income minus taxes.

Revenue minus expenses equals the total net profit of. Net revenue is defined as a company s sales revenue minus discounts and returns. The direct cost margin is calculated by taking the difference between the revenue generated by the sale of goods or services and the sum of all direct costs associated with the production of those. Initial project set up in accounting.

Variable overhead costs such as production supplies fixed overhead costs such as equipment depreciation and supervisory salaries an alternative to the gross margin concept is contribution margin which is revenues minus all variable costs of sales. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. Gross margin is the amount of money left after subtracting direct costs. Net service revenue nsr 60 000 00.

Operating income is a measure of profitability that is generated from operations. Net revenue is sometimes called the real top line because it reflects total sales with only direct sales related expenses deducted. Direct expenses budget 3 000 00 5. Nsr minus direct expenses budget.

Profit is directly related to products and services. Gross income is basically revenues and gains minus expenses and losses. As deductions from the total revenue. Profit also called the bottom line is what s leftover after all expenses including discounts returns cost of goods sold salaries wages and overhead and.

4 8 21 contents1 revenue definition 2 revenue examples 3 operating revenue definition 4 operating revenue examples 5 non operating revenue definition 6 non operating revenue examples 7 expenses definition 8 expenses examples. Project labor budget not direct labor 54 000 00.