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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Strategy Formulation (Part 2)
In this video Net Profit margin is calculated as PBIT upon revenue, Isn’t it is revenue minus the cost of goods sold, operating and other expenses, interest, and taxes and divided by revenue.
That is the definition for financial accounts, but for management purposes it is the operating profit that we are always concerned with and this is the profit before interest and tax (because that is the profit that is under the control of the management).
Thank you so much sir.
You are welcome 🙂