A level Business Revision - Types of Profit

In this A level Business revision tutorial, we distinguish between the different classifications of profit listed in a company's Income Statement. Profit is a topic on the new AQA, Edexcel and OCR A level Business syllabus.
TakingTheBiz is a channel dedicated to A level Business revision.
See more of our videos: kzbin.info...
Stay in touch with TakingTheBiz via social media:
Facebook: / takingthebiz
Twitter: / takingthebiz
Instagram: / takingthebiz
DISCLAIMER: The equations for the different types of profit can vary between different exam boards, so be sure to research the exact formula you will be required to use.

[@mahnoorakber6435]

your videos are so intellectual

[@souluchia8876]

Got A* for my 3 mocks in business cuz of all these vids , 66/80, 73/80, 72/80

[@TakingTheBiz]

I don't think I can take any of the credit for those marks, you must have studied very hard. Congratulations on your mock results and good luck when you sit the real thing!

[@souluchia8876]

Thank you , just one month left now

[@PapaSeed]

Soul Uchia I got C C D

[@souluchia8876]

Papa Seed what exam board are you ? It’s mostly the structure used in order to access the higher marks

[@PapaSeed]

Soul Uchia I'm aqa and I hate 16 marker

[@mahnoorakber6435]

Sir pls keep more coming. you make it so easier

[@thetat2d114]

I received a Master of Arts in Executive Leadership (it’s a business degree here in the States). I’ve been subscribed to your channel for some time now to keep the concepts from school fresh. I wish there was a channel like this to help keep me fresh and current in my other field, I have a Bachelor’s in Religion & a Master of Arts in Theological Studies. I know Religion/Theology & Leadership (businesses), it’s a long story, lol.

[@hugoclark3021]

Wasted ur money mate

[@vishalm1022]

perhaps make that channel 🤷‍♂

[@majidelsawi8162]

Thank you, Sir!

[@rickyahir9076]

can you please specify other costs or expenses under operating profit

[@itsgeorgia8354]

Hi, do you include cost of sales in the operating profit?

[@Hannah-eq2qo]

need help on contribution and marginal costing!! any video suggestions??

[@gracefrench7935]

how are variable and direct costs different?

[@gelz6205]

Hi, what is net profit then? Is it the same as operating profit or profit for the year?

[@TakingTheBiz]

Net profit is what smaller organisations such as sole traders call operating profit.

[@gelz6205]

Ahh okay, so in the exam could you use them interchangeably?

[@TakingTheBiz]

If you are quoting an exert from a financial document in your answer, then it would be best to use the term that is listed in the document, but if you are just writing more generally about profit then you could use either term.

[@gelz6205]

Okay. Thank you!

[@la1663]

Could you please tell me why a business would aim for a high gross profit margin

[@TakingTheBiz]

Because businesses like to focus on efficiency. Imagine you were running a business and you made £100,000 sales revenue. You would want to keep as much of that revenue as possible as profit, but you'd know that you would have to spend some of it running your business and producing more products to sell in the future. Gross profit is the amount of revenue that is left over after you have paid to produce your goods/services. You want to spend as little as possible creating your product (without compromising quality) so that you have as much revenue left over as possible. That way, you are converting sales revenue into gross profit as efficiently as possible, without any unnecessary expenditure on the production process that reduces the percentage of revenue that you have remaining as profit.

[@raiyanzubair1200]

sir tell me the difference between Aesthetic and psycological pricing?

[@lockdown727]

Psychological pricing is the practice of setting prices slightly lower than rounded numbers, in the belief that customers do not round up these prices, and so will treat them as lower prices than they really are. ... An example of psychological pricing is setting the price of an automobile at $19,999, rather than $20,000

[@mahnoorakber6435]

Sir is this as business?

[@TakingTheBiz]

That may depend on what qualification and exam board you follow but I would assume so for most specs

[@rayeldred6861]

Hot