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Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), ... (on sales) is the difference between selling price and cost ...
Cost of goods sold (COGS) (also cost of products sold (COPS), or cost of sales [1]) is the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase ...
For a business, gross income (also gross profit, sales profit, or credit sales) is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments. This is different from operating profit (earnings before interest and taxes). [1]
Gross profit margin is calculated as gross profit divided by net sales (percentage). Gross profit is calculated by deducting the cost of goods sold (COGS)—that is, all the direct costs—from the revenue. This margin compares revenue to variable cost. Service companies, such as law firms, can use the cost of revenue (the total cost to achieve ...
Economic value added – Value of a firm's profit after deduction of capital costs; Gross income – Sum of all earnings before taxes; Gross margin – Gross profit as a percentage (the difference between the sales and the production costs) Income statement – Type of financial statement
Cost of revenue is the total of all costs incurred directly in producing, marketing, and distributing the products and services of a company to customers. Cost of revenue can be found in the company income statement .
Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit. [11] This is true if the firm has no non-operating income. (Earnings before interest and taxes / Sales [12] [13]) Profit margin, net margin or net profit margin [14] Net Profit / Net ...
"Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. [1] Decomposing Sales as Contribution plus Variable Costs. In the Cost-Volume-Profit Analysis model, costs are linear in volume.