gross profit

Definition:

turnover, or net sales, over a period minus cost of sales when cost of sales is the lesser item. Gross profit measures the profit from selling things without taking into account the expenses of selling or the expense of financing and administering the enterprise. The gross profit from a business enterprise’s normal activities over a period is sometimes called its ‘trading profit’. Gross profit is often expressed as a percentage of sales revenue or net sales. Also called ‘gross margin’. If cost of sales is greater than turnover the difference is called ‘gross loss’.



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