Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 Net profit is operating profit plus non-operating revenues (such as interest revenue) minus non-operating costs (such as interest cost) minus income taxes. Chapter 8 assumes non-operating revenues and non-operating costs are zero. Thus, Chapter 8 calculates net profit as Net profit = Operating profit −
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