What Is Net Profit

question 39

Multiple Choice

What is net profit?

• A)Operating profit less interest and taxes.
• B)COGS less operating expenses.
• C)Gross sales minus net sales.
• D)A measurement of the liquidity of the firm.
• E)Net sales minus the cost of goods sold.

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Definitions:

Cost Center

A department within a company where costs can be allocated, but which does not directly generate revenue.

Administrative Department

A segment within an organization responsible for managing general operations and administrative tasks.

Profit Center

A segment or department within a business that is responsible for generating its own revenue and profits.

Revenue Center

A division or unit within an organization responsible for generating revenue through its operations and activities.