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O gross profit mark for follow up.
Gross revenue minus cost of goods sold cogs is often referred to as. When you calculate your company s gross income on the other hand you re looking at the total revenue your company has made minus the cost of the goods you sold cogs. However in practice many people use these words interchangeably. Gross income is also often referred to as gross profit and the two terms can be used interchangeably. Gross margin is a company s net sales revenue minus its cost of goods sold cogs.
In other words it is the sales revenue a company retains after incurring the direct costs. Gross profit is simply revenue minus cost of goods sold cogs. Gross profit typically refers to the dollar value while gross margin refers to the percentage gross profit revenue. What is gross margin.
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