what is the need of finding GROSS PROFIT.. when the ultimate thing for which stakeholder looks for is NET PROFIT??
Ashish periwal (na) (49 Points)
01 July 2012what is the need of finding GROSS PROFIT.. when the ultimate thing for which stakeholder looks for is NET PROFIT??
KRISHNAPRASAD IYER
(B.Com , CA Final)
(657 Points)
Replied 01 July 2012
Gross profit indicates whether the business is capable of earning profit or not.
Net profit indicates the ultimate result of the business.