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 ?
British horserace betting business on telephone and the internet is charged at ten per cent of gross profits.
Our Information Services gross profits decreased 16.
Betting shop with gross profit of pounds 150,000 or more: 10%
We are pleased that despite the increasingly difficult economic environment, we were able to achieve double-digit gross profit and earnings growth in 2008.
BOLA has commissioned the financial consultants Europe Economics, who worked on the new tax regime, to examine a gross profit levy scheme.
The increase in our Transportation gross profit margin in the fourth quarter is due to an increase in our truck transportation gross profit margins and to a change in the mix of services that make up this business line.
Gross profit for the fiscal year ending June 30, 2006 was $250,737 compared to $117,525 for the previous fiscal year, an increase of more than 113%.
Gross profit (revenues less cost of emissions certificates) was up 80% to $1,713,000 compared to the prior year of $951,000.
During the three months ended June 30, 2005, the Company recognized gross profits of $1,193,246 as compared to gross profits of $827,094 for the same period in 2004, an increase of $366,152 or 145%.
Although our core business and top line growth remain strong, gross profits continue to be negatively impacted by rising steel and other material costs.
During the year, gross profits from the Industrial & Offshore Division increased 54% to $5.
Management believes this most likely indicates that the decline of sales and gross profits has leveled off and the Company is more likely than not positioned to experience an increase in sales and gross profits going forward.