The Income/Outcome^® Contextuary

a visual glossary of corporate finance

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We use "business visualization" to graphically simplify complex business concepts (and increase business acumen). To get more information on business visualization, please see "The Company Board" (our business results visualizer) and Income/Outcome (our customizable business simulation).

The following are our generic explanations of common corporate financial terminology. Actual meanings can vary wildly from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"

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Profit

Calculation of Gross Income or Gross Profit:
Sales less Cost of Sales (COS)
Calculation of Operating Income or OperatingProfit:
Sales less Cost of Sales (COS) less Operating Expense
Calculation of Net Income or Net Profit:
Sales less all costs and expenses

This number describes what income is left over after expenses are deducted from sales.

See also Profit & Cash

Full it flag term list.

The Income/Outcome® Contextuary

a visual glossary of corporate finance

Profit

The Income/Outcome^® Contextuary