Describe the term Gross Profit
Briefly describe the term Gross Profit?
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Gross Profit is a company’s minus revenue its cost of goods sold. It is as well named as gross and margin income. It is evaluated by deducting all costs related to sales that is, manufacturing expenditures, raw materials, labor, and advertisement and selling expenses from sales. It is an indication of the managements’ efficiency to employ labor and material in the production procedure. Gross Profit = Net Sales – Cost of Goods Sold
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