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A common measure of a company's success equal to the net revenue that remains once all costs have been deducted. The total profit for a business forms the base income
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Video DEFINITION of 'Gross Profit' A company's total revenue equivalent to total sales minus the cost of goods sold. Gross profit is the profit a company
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Gross profit on the income statement is the total revenue subtracted by the cost of generating that revenue, or cost of goods sold.
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Rather than relying solely on net profit figures to evaluate a company's performance, seasoned investors will often look at gross profit and operating profit as well.
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
Net profit is also referred to as the bottom line, net income, or net earnings. The formula for net profit is as follows: Total Revenue-Total Expenses = Net Profit
Abnormal profit . Profit in excess of normal profit - also known as supernormal profit or monopoly profit. Abnormal profits may be maintained in a monopolistic market in the
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Total Revenue or Total Sales The first line on any income statement is an entry called total revenue or total sales. This figure is the amount of money a business brought
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Gross profit is important because it reflects the core profitability of a company before overhead costs, and it illustrates the financial success of a product or service. Gross
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Gross Profit: Definition and Formula. Gross profit is the amount of revenue that a company brings in before subtracting the expenses associated with that revenue.
TOTAL REVENUE: The revenue received by a firm for the sale of its output. Total revenue is one two bits of information a firm needs to calculate economic profit, the
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Gross Profit = Total Revenue a“ Operating Expenses A high ratio of gross profit to revenue is a sign of good management as it implies that i the operating cost is
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