Calculating profit in the restaurant business starts with looking at the cost, after which the profit is calculated.

Cost is the economic value of the resources used to produce and sell a certain type and quantity of product measured in monetary terms. Enterprises to produce products need to consume means of production and labor, these consumptions in the cost of money measured in terms of material costs, depreciation costs, wage costs and so on.

The business activities of an enterprise include not only production, but also sales activities, so the expenses incurred in sales activities should also be included in the cost. At the same time, the expenses incurred to manage the production should also be included in the cost. At the same time, the expenses incurred for the purpose of managing production activities are also in the nature of forming costs.

Profit can be subdivided into gross profit, net profit and profit before tax.

Gross profit is the difference between sales revenue and the cost of goods sold, gross profit plus additional revenue minus other expenses (e.g., output costs, salaries, etc.) is net profit before tax, and net of tax is true net profit.

Expanded:

Expenses and costs are two separate concepts. The connection between the two lies in the fact that a cost is an expense that is objectified by being aggregated to a certain object. That is to say, the production cost is for a certain costing object for the current period of costs incurred in the collection of the formation of the end of the period the cost of sold products carried over to the current period of expenses.

The difference between the two is that the cost is the depletion of assets, it is for a certain period of time, and has nothing to do with the production of which products, the cost of a certain type and quantity of products or commodities associated with, regardless of the accounting period in which it occurs.

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