Gross Profit means…
The difference between Sales and Cost of Goods Sold.
For instance, if I bought a widget for $2.00 and sold it for $5.00, my Gross Profit would be $3.00. Of course, I’d need to look at my Net Profits to know if I’m actually making any money in my widget business.
WHAT’S IT MEAN? Quickies
This post is part of the “What’s it Mean?” series of short and sweet responses.
Be sure to check the other posts in the series for more quick definitions. You can follow the series along on the blog or read them first by subscribing to our popular Business Plus+ newsletter.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
Twitter: @christielewis
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