Originally posted by v8gaz
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Plan B turnover amount?
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Originally posted by v8gaz View PostWhy is everyone confusing gross profit with turnover?.
You see - this is all good. I'm learning the basics here (hopefully) so I won't sound completely clueless when I speak to accountants.Comment
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Originally posted by Spoiler View PostI believe you make a good point. I am trying to work out potential costs to ensure we can create enough margin to make it viable. So I think I should really be interested in the gross margin (profit?), not necessarily total turnover. Some services we sell will have a much better margin than others.
You see - this is all good. I'm learning the basics here (hopefully) so I won't sound completely clueless when I speak to accountants.Comment
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Originally posted by JamJarST View PostAre you the most accounting savvy of the four?Comment
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Quick search: "Margin is measured as ratio, profit as an amount -- in both cases, they measure the difference between cost of materials and revenue. Gross margin/profit do not consider the cost of doing business (ie. payroll, taxes, etc)".
So, what's the technical term for the stuff I'm looking to cost then, i.e. salary, fees, tax, etc? Then I think I'd get something like:
Revenue - cost of materials - "the cost of stuff I'm working out" = profit (£).Comment
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Originally posted by Spoiler View PostQuick search: "Margin is measured as ratio, profit as an amount -- in both cases, they measure the difference between cost of materials and revenue. Gross margin/profit do not consider the cost of doing business (ie. payroll, taxes, etc)".
So, what's the technical term for the stuff I'm looking to cost then, i.e. salary, fees, tax, etc? Then I think I'd get something like:
Revenue - cost of materials - "the cost of stuff I'm working out" = profit (£).Comment
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Comment
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Originally posted by Spoiler View PostQuick search: "Margin is measured as ratio, profit as an amount -- in both cases, they measure the difference between cost of materials and revenue. Gross margin/profit do not consider the cost of doing business (ie. payroll, taxes, etc)".
So, what's the technical term for the stuff I'm looking to cost then, i.e. salary, fees, tax, etc? Then I think I'd get something like:
Revenue - cost of materials - "the cost of stuff I'm working out" = profit (£).
Expenses
Overhead
Though a possibly correct term would be "cost of sales". But that wouldn't fit in with what you have above since you have already excluded raw material cost.Comment
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