Operating vs. Non-Operating Expenses
Common Operating Expenses
Common Non-Operating Expenses
Non-Operating Income
Visual Guide to the Multi-Step Income Statement Part 1
Math Essentials: Solving for Multiple Variables
Operating Profit Margin
COGS vs. SGA
Visual Guide to the Multi-Step Income Statement Part 2
Gross Profit Margin
Course Review
Course Quiz
Course Description
In the third lesson of our "Accounting 101" series, “Operating Profit and Gross Profit,” you will deepen your understanding of financial statements by exploring two key subtotals of the income statement: operating profit and gross profit. You will learn to identify core business items that impact operating profit and understand how non-operating items are presented. Additionally, you will learn how to calculate gross profit and gross profit margin by distinguishing between the cost of goods sold and selling, general, and administrative expenses. With this knowledge, you'll be able to evaluate a company's pricing strategy and ability to scale.
By the end of this course, you will able to answer questions such as:
• Why is operating profit useful for analyzing competitors?
• How does a company’s gross profit margin affect its ability to scale?
• How do gross profit margins vary across industries?
Access on mobile
Online at your own pace
Key Skills
Revenues
Cost of Goods Sold (COGS)
Selling General and Administrative Expenses (SG&A)
Operating Profit
Operating Profit Margin
Gross Profit
Gross Profit Margin
Non-Operating Income
Non-Operating Expenses
Raw Materials
Depreciation
Amortization
Research and Development
Sales and Marketing
Accounting and Finance
Manufacturing Overhead
Bad Debt Expense
Labor
Financial Statements
