What is gross profit?
Gross profit refers to revenue minus cost of goods sold. It shows profit from core operations before other expenses.
Why is gross profit important?
It indicates how efficiently a business produces and sells goods or services.
How is gross profit calculated?
Gross profit equals revenue minus cost of goods sold.
What does a high gross profit mean?
It suggests strong pricing or cost control.
How does gross profit differ from net profit?
Gross profit excludes operating expenses and taxes, while net profit includes them.