Gross Profit - What do you mean by gross profit?

Q: What do you mean by gross profit?

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales).

Answer

After subtracting the expenses linked to producing and selling a company's goods or rendering its services, the remaining amount is the gross profit. When you deduct the cost of goods sold (COGS) from revenue (sales), you get gross profit. This number shows up on an income statement.

Gross Profit - What do you mean by gross profit?

Other useful ERP terms

AI suggestions