What Is The Difference Between Turnover And Profit?


4 Answers

Anonymous Profile
Anonymous answered
Turn over simply means the number of times at which a particular stock/item/good is being sold/turn over. It also refers to Net sales(sales less commission payable/discount allowed).

Profit simply means the difference in the cost price of a particular stock and the selling price of the particular stock.Profit= Sales - cost of sales. The cost of sales is determined thus- opening stock+(purchases+carriage inwards-returns awards) - closing stock. Profit is being divided into two categories, 1. Gross profit & 2. Net profit.

Gross profit is the common profit a layman considers he has made on a particular business but to an accountant the net profit is being regarded as the real profit which is being made in the business. Gross profit = Sales - Cost of sales, while Net profit= Gross Profit- other admin expenses incurred in the course of the business.
Anonymous Profile
Anonymous answered
Gross Profit: It is the difference between revenue and cost of goods sold (COGS). If I sell a chocolate for $1 and I paid 30 cents for it (including marketing and purchasing cost etc) my gross profit would be 100 cent - 30 cent = 70 cents.

Turnover: It is how many times you trade a particular good or stock. Let say, I keep 100 dollars worth for chocolate stock. Every year I sell 1000 chocolates then my turnover would be 1000/100 = 10. Turnover is necessary to determine in order to know how much stock to keep on hand and when to finish the old stock.
vijay mohan Profile
vijay mohan answered
Simply turnover=sales=cost+profit
nabwire scarlet Profile
nabwire scarlet answered
Turnover is the volume of business over a given period of time
It can also be defined as the ratio of workers in a company that have been replaced over a period of time, to the average number of workers.
When a company is dealing in goods, it can be refered as the number of times that their inventory of goods is sold over a given period whereas Profits the positive gain from a business operation after subtracting for all expenses.

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