What is Gross Profit?
Gross profit (also called gross margin, sales profit and gross income) is a company’s total revenue (equivalent to total sales) minus the cost of goods sold. In accounting, gross profit, gross margin, sales profit, or credit sales is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments. This is different from operating profit (earnings before interest and taxes). Gross margin is the term normally used in the U.S., while gross profit is the more common usage in the UK and Australia.
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