Distinguish between ‘Gross Profit’ and ‘Gross Pay.’
(i)
(ii) - Leaving Cert Business - Question 3 - 2002
Question 3
Distinguish between ‘Gross Profit’ and ‘Gross Pay.’
(i)
(ii)
Worked Solution & Example Answer:Distinguish between ‘Gross Profit’ and ‘Gross Pay.’
(i)
(ii) - Leaving Cert Business - Question 3 - 2002
Step 1
Distinguish between ‘Gross Profit’
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Answer
Gross Profit is calculated as the difference between sales revenue and the cost of goods sold (COGS). It is a measure of a business's efficiency in producing and selling its products. This figure is typically located in the Trading section of the Final Accounts.
Step 2
and ‘Gross Pay.’
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Answer
Gross Pay represents the total earnings of an employee before any deductions are made. This includes normal pay, bonuses, and any overtime pay. It is a crucial figure for understanding employee compensation.
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