Departmental
Profit is calculated by taking Gross Profit minus Departmental
Expenses. To make sense of this figure it is always expressed as a
percentage of Turnover when used for trending as it is the direction of
travel that is of most interest to you.
Example:
A) Departmental Profit = R183,389 B) Departmental Turnover = R573,088 C) Departmental Profit % = 32% (A ÷ B X 100)
Discussion:
Related Terminology:
The
Departmental Profit of the Bodyshop is also called many other
things such as, Direct Profit, Operating Profit and of course the
bottom line.