UNIQUE BUSINESS IDEAS
Anything in total, nothing is deducted.
The difference between the amount earned and spent.
The difference amount between the sales amount and the cost of goods sold.
The amount of money taken in exchange for a good.
Typically includes money spent on raw materials and labor.
What is the cost of goods sold?
Gross profit is also called gross income.
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Gross profit is derived after deducting variable production costs.
Raw material, Direct Labor, Commission, Utilities, Freight & Shipping.
What are variable production costs?
Fixed cost is not part of gross profit
Amortization, Depreciation, Insurance, Interest, Property Taxes, Rent, Salaries, and Utilities that are largely fixed.
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What are fixed costs?
NET SALES - COST OF GOODS SOLD
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