Gross Profit


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Gross Profit

 

in socialist countries a form of display of net income, a value expression of the overall financial result of the activity of an enterprise—that is, the monetary expression of the part of an enterprise’s revenues which it retains after deducting all expenditures. Gross profit is a synthetic index of the overall result of the economic activity of an enterprise. The principal source of the creation of gross profit is labor newly expended by employees of the enterprise on the production of output. Gross profit expresses in monetary form the surplus product and in part the necessary product created by the enterprise. In practice the amount of gross profit is established as the difference between the revenue of an enterprise from output sold at wholesale prices and the expenditures on its production and marketing. In addition, gross profit takes into account the results of the so-called nonselling activity of an enterprise (net financial results in the management of the housing and communal economy, in services of a nonindustrial character, in clearing debtors’ and creditors’ liabilities, and so forth). Gross profit serves as the basis for determining net profit and as the source of setting up all funds of an enterprise. As a result of the redistribution of profit between enterprises and industries through the mechanism of prices (the deviation of prices from cost and so forth), gross profit does not always characterize precisely the true efficiency of an enterprise.

A. M. EREMIN

References in periodicals archive ?
Overall, both gross profit and operating earnings improved slightly compared to the prior year.
The profitability of a business is very sensitive to its gross profit margin since it is the gross profit that must cover all overhead or operating costs of the business.
If this is the case, we should have the ability to notice this effect at the gross profit level.
Spread betting business is charged at two per cent of gross profits.
The undiscounted sales price must be used to calculate the gross profit percentage unless more than 35% of the employer's gross sales are at a discounted price.
Because the business VAT is clearly a tax on business gross profit, its revenue potential should be constrained by the same factors that constrain the present corporate income tax.
For the first quarter, Sourcing gross profits increased 13.
Ability aims to achieve 10% in gross profit margin and Altek is expected to see gross profit margin stay at 15% this year.
But to explain why the gross profit margin is so important, let's use some more analogies.
They have taken a base level of ten per cent, which will apply to bookmakers whose cash business on horseracing produces a gross profit of over pounds 150,000, as well as businesses exclusively operating phone and internet betting, and, for the first time, betting exchanges.
We are pleased that despite the increasingly difficult economic environment, we were able to achieve double-digit gross profit and earnings growth in 2008.
According to the latest Betting Office Licensees' Association newsletter, "early indications are that with a gross profits tax due to begin in October, the Bookmakers' Committee will propose a gross profit levy.