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Glossary


What is gross profit

04 Feb 2023
Author: Neil Helps

What is Gross Profit?

Gross Profit is income less cost of goods sold. Cost of goods are the direct costs related to the main trading activity of the entity.

FAQ

How do you calculate Gross Profit?

Gross Profit = Sales – Cost of Goods sold

How do you calculate Cost of Goods sold?

COS = Opening Stock + Purchases – Closing Stock

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