Question

What is a gross profit?

Answer 1

Explanation:

In accounting, gross profit or sales profit or gross margin is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments. Note that this is different from operating profit. Note also that gross margin is the term normally used in the U.S., while gross profit is the more common usage in the UK and Australia. The various deductions leading from Net sales to Net income are as follows: Net sales = Gross sales – Gross profit = Net sales – Cost of goods sold Gross profit percentage = {/Net sales} x 100 Operating Profit = Gross Profit – Total operating expenses Net income = Operating Profit – taxes – interest

Answer 2

Answer:

Gross profit:

If the amount of sales exceeds the cost of goods sold the difference is called gross profit

Gross profit= sales-cost of goods sold