gross profit

n (Accounting & Book-keeping) accounting the difference between total revenue from sales and the total cost of purchases or materials, with an adjustment for stock

Thesaurus

Noun

gross profit - (finance) the net sales minus the cost of goods and services soldgross profit margin, margincorporate finance - the financial activities of corporationnet income, net profit, profit, profits, earnings, lucre, net - the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)

Gross Profit

in socialist countries a form of display of net income, a value expression of the overall financial result of the activity of an enterprise—that is, the monetary expression of the part of an enterprise’s revenues which it retains after deducting all expenditures. Gross profit is a synthetic index of the overall result of the economic activity of an enterprise. The principal source of the creation of gross profit is labor newly expended by employees of the enterprise on the production of output. Gross profit expresses in monetary form the surplus product and in part the necessary product created by the enterprise. In practice the amount of gross profit is established as the difference between the revenue of an enterprise from output sold at wholesale prices and the expenditures on its production and marketing. In addition, gross profit takes into account the results of the so-called nonselling activity of an enterprise (net financial results in the management of the housing and communal economy, in services of a nonindustrial character, in clearing debtors’ and creditors’ liabilities, and so forth). Gross profit serves as the basis for determining net profit and as the source of setting up all funds of an enterprise. As a result of the redistribution of profit between enterprises and industries through the mechanism of prices (the deviation of prices from cost and so forth), gross profit does not always characterize precisely the true efficiency of an enterprise.

A. M. EREMIN

gross profit

Gross profit

Sales minus the cost of goods sold.

Gross Profit

A company's revenue from sales in a given period of time less its cost of goods sold. Gross profit is easy to calculate and may provide a rough idea of a company's performance. However, it does not account for a number of very important expenses, such as marketing or employee salaries. For that reason, it is not as accurate of a measurement as net profit or EBIT.

gross profit

Total revenue of a business minus the cost of goods it sold. Gross profit does not include income from incidental sources and also excludes selling and administrative expenses. Compare net income.

gross profit

the difference between SALES REVENUE and the COST OF SALES before the deduction of selling, distribution, administration and other costs in the PROFIT-AND-LOSS ACCOUNT.

gross profit

the difference between SALES REVENUE and the COST OF GOODS SOLD. Gross profit less the operating expenses of the business equals NET PROFIT.

gross profit

Related to gross profit: revenue, net profit, Operating income, Operating Profit, Cost of goods sold

noun

Synonyms for gross profit

noun (finance) the net sales minus the cost of goods and services sold

Synonyms

gross profit margin
margin

Related Words

corporate finance
net income
net profit
profit
profits
earnings
lucre
net