Asked by Rachel Hwang on Apr 24, 2024
Gross profit represents the merchandising profit of a company.
Gross Profit
The difference between revenue and the cost of goods sold before deducting operating expenses, indicating the efficiency of core operations.
Merchandising Profit
The profit a company makes from buying goods at wholesale and selling them at retail.
Company
An entity engaged in commercial, industrial, or professional activities, either for profit or as a nonprofit organization.
- Gain insight into the importance and calculation of gross profit for evaluating the financial success of a company.
Learning Objectives
- Gain insight into the importance and calculation of gross profit for evaluating the financial success of a company.