Gross profit
Gross profit is net sales less cost of goods sold.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
- Loss. A loss occurs when the gross profit of a business is less than the expenses the business has to pay to keep the business running. This is usually called a Net Loss.
- Net profit. The result after taking expenses away from the Gross Profit or Loss.
- Income. Money that is earned by a business through the sale of products or services.
- Profit. The difference between income earned and expenses paid. The greater the profit the better for business.
