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What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?
Gross Profit
How does one calculate the gross profit?
Gross profit is a pretty simple economic term. Simply, it is the difference between the total amount of sales minus the cost of the goods being sold.
What is the difference in gross profit and net profit?
GROSS PROFIT Gross Profit is the difference between Net Sales and Cost of Goods Sold. First, Net Sales is calculated by subtracting Sales returns and allowances from Sales. Sales - Sales Returns and Allowances = Net Sales Next, Gross Profit is calculated by subtracting Cost of Goods Sold from Net Sales. Net Sales - Cost of Goods Sold = Gross Profit Gross Profit is expressed as a dollar figure, like $100. If Cost of Goods Sold exceeds Net Sales, Gross Profit figure will be negative. PROFIT MARGIN Profit Margin is not a dollar figure. Profit Margin shows the percentage of each sales dollar that results in net income. First, Net Income is calculated by subtracting Operating Expenses from Gross Profit. Gross Profit - Operating Expenses = Net Income Next, the Profit Margin ratio is constructed, and the result is expressed as percentage. Net Income : Net Sales = Profit Margin For example, assume that Net Income equals $10,000 on Net Sales of $100,000. In this case Profit Margin equals $10,000 : $100,000 = 0.10 = 10%. GROSS PROFIT MARGIN Terms "Gross margin" and "Gross profit margin" have been invented by some enterprising accounting students. These terms are part of accounting jargon in some colleges. The meaning of those terms is very liberal, - it means whatever one wants it to mean. For example, "Gross Profit" may mean either Gross Profit or Profit Margin. Most likely, it means that the speaker does not know the meaning of either one of the terms. But "Gross Profit Margin" surely takes the cake. It's just a mouthful piece.
What is meant by the term profit?
the term profit means the profit is made from a proportion of sales revenue.
What is the meant by profit?
the term profit means the profit is made from a proportion of sales revenue.
The term used to describe the excess of gross profit over direct expense is?
The term used to describe the excess of gross profit over direct expense is gross margin. This is the percentage by which the profits exceedÊthe production costs.Ê
In dollar amount what is the average commission for sales representative?
This question is unanswerable. The term commission indicates that the person is paid a percentage of the sales price. The commission they earn each week/month/year, in dollars, will depend on two things - (i) the level at which commission is calculated and (ii) the total sales they have made.
What term refers to the money that remains after all the costs of production have been paid?
Gross Profit
Does sales return and allowances go on the statement of earnings?
--> another term for Statement of Earnings is Income Statement --> in income statement, you deduct the Sales Return & Allowances from the Gross Sales to come up with Net Sales --> in presentation purposes, usually it is only the Net Sales account that is shown
Will Tesla motors survive?
Tesla Motors has a strong cash position after repaying their Government loans and has improving gross profit margins. In the short term, Tesla will remain unprofitable but growing sales give Tesla a very good chance of success becoming an established car brand.
What does the Hobbit term one gross mean?
A gross is the standard term for a dozen dozens, which is 144.
This term refers to the total amount without deductions?
gross pay
