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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2012 Dear sir,
In general practice,between gross profit rate and net profit rate,which one should be avoided to fluctuate?
Please advise me.

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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15 May 2012 The net profit rate is totally dependent on the gross profit rate. And the economic conditions sorrounding an organisation can not be controlled totally in any circumstances. As such fluctutations are bound to occur. Fluctutations resulting in higher gross profits are always appreciated. It is just that the downside fluctuations should be controlled and the controls can be and should be made on the expenses being incurred. Total avoidance of any fluctuation cannot be made but just can be controlled to some extent.