👉 Profits computing, also known as profit computation or profit calculation, is the process of determining the net earnings of a business or entity after accounting for all expenses, costs, and revenues. It involves subtracting total expenses, including fixed costs like rent and salaries, and variable costs like raw materials and sales commissions, from total revenue generated through sales or services. The result is the profit, which represents the amount of money a business retains after all operational costs are covered. This calculation is crucial for businesses to assess financial health, make informed decisions, and evaluate performance over time.
