Is gross profit same as operating profit?

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Answer

1233288

2026-03-17 04:05

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Gross profit and operating profits are two different values as gross profit only cater direct expenses to produce goods while operating profit is calculated after deducting indirect expenses and selling and administration overall called operational expenses to arrive at operating profit

Example:

Sales xxxx

Less:Purchases xxxx

Gross Profit xxxx

Less:

Selling Expenses xxxx

Admin Expenses xxxx

other expenses xxxx

Operating Profit xxxxx

If there is no selling, admin or other expenses then gross profit and operating profit will be same.

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