Question

write note on :operating profit system​

Answer 1

$\large\boxed{\fcolorbox{brown}{pink}{Answer:-}}$

operating profit (EBIT)

It is the profit earned through the normal operations and activities of thebusiness. Operating profit is the excess of operating revenue over operatingexpenses. While calculating operating profit, the incomes and expenses ofa purely financial nature are not taken into account. Thus, operating profitis profit before interest and tax (EBIT). Similarly, abnormal items such asloss by fire, etc. are also not taken into account. It is calculated as follows:

Operating profit = Net Profit+ Non Operating Expenses – Non Operating Incomes