MANAGEMENT

Detailed explanation-1: -Gross profit is the profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services. You can calculate gross profit by deducting the cost of goods sold (COGS) from your total sales.

Detailed explanation-2: -Gross profit is calculated by subtracting cost of goods sold from net revenue.

Detailed explanation-3: -Gross profit is a key profitability figure for a small business. It’s calculated by subtracting cost of goods sold from sales revenue. Here’s how you can use gross profit, and the gross profit margin, to measure your business’s production efficiency.

Detailed explanation-4: -Both manufacturers and retailers list cost of goods sold on the income statement as an expense directly after the total revenues for the period. COGS is then subtracted from the total revenue to arrive at the gross margin.