Gross profit is defined as the difference between the revenue and the cost of goods sold. It identifies the amount which is available to or at the disposal of the business to cover its other operating expenses. The revenue comes in from the sales made by the company during the period. The other heads of administrative or operating expenses include such general and administrative expenses as utilities, rent, advertising, etc.
Gross profit is defined as the revenues earned by the company before the operating expenses are taken into account. It is obtained by deducting the cost of goods sold from the net sales. The simplest definition of gross profit is the difference between the net sales made by the company over the accounting period and the cost of goods sold by the company over the accounting period. It is also known as the gross margin earned by the company.
Gross profit is defined as the revenues earned by the company before the operating expenses are taken into account. It is obtained by deducting the cost of goods sold from the net sales. The simplest definition of gross profit is the difference between the net sales made by the company over the accounting period and the cost of goods sold by the company over the accounting period. It is also known as the gross margin earned by the company.
