When load shedding first started, many years ago, we never imagined that it would become part of our daily life. It has become normal to
Net Profit % before/after Tax = Net Profit before or after Tax /Sales Net Profit % before/after Tax shows the profit per R1 of sales
Gross Profit % is also known as Gross Margin % Gross Profit % = Gross Profit / Sales Higher the gross profit %, higher the
Gross Profit Less Operating Expenses = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses,
Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs
Operating Expenses Operating expenses arise in normal operation & running of the business – the day to day activities Operating Expenses not directly related to
Prepaid Expense Prepaid expense is expense paid in the current the financial year in respect of the following financial year Prepaid Expense will decrease the
Accrued Expense Accrued expense is expense incurred but unpaid at the end of the financial year Accrued Expense will increase the expense in the Income
Cost versus Expense Cost is R value of economic resource to undertake an activity (e.g manufacture product or render service) Expense is the cost that
Cost of Sales Opening stock Plus Purchases Less Closing stock = Cost of Sales Cost of Sales is direct cost of product sold, shown in
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