Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of providing its services.
 | | Term of the Day | Words to Know | | |  | | Gross Profit | Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). These figures can be found on a company's income statement.
Gross profit may also go by sales profit or gross income. | | Read More » | | Related to "Gross Profit" | | | | Cost of Goods Sold | | Cost of goods sold (COGS) is defined as the direct costs attributable to the production of the goods sold in a company. | | Read More » | | | Variable Cost | | A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. | | Read More » | | | Fixed Cost | | A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. | | Read More » | | | Operating Profit | | Operating profit is the profit from a firm's core business operations, excluding deductions of interest and tax. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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