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 ?
For the third quarter, Sourcing gross profits increased 13.
BOLA has commissioned the financial consultants Europe Economics, who worked on the new tax regime, to examine a gross profit levy scheme.
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%.
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has permitted an undivided 40% interest in the VEMRAM patents to revert to Estancia, along with the grant of an undivided interest equal to 32% of gross profit for each license of the VEMRAM patents sold or transferred by Pageant and all royalties received by Pageant from each license or sale of the VEMRAM patents, as a result of certain agreed upon milestones relating to the development of the VEMRAM technology not having been met under the Asset Purchase Agreement dated December 10, 2000 among Pageant, Micromem, Richard Lienau and Estancia Limited.
During the six-month period ending December 31, 2003 gross profits from the Industrial & Offshore Division increased 40% to $2.
For licensed betting offices or media platforms showing a gross profit on British horseracing of more than pounds 75,000 per year, a flat ten per cent charge of gross profits will apply.
Analysis by Energy Insight, a daily web-based publication of Financial Times Energy, suggests that recent high energy prices are leading to significantly higher gross profits for a number of power plants compared to a year ago.
Assume, for example, that the gross profit tax base found in the VAT were extracted and substituted for the present U.
The increase in our Transportation gross profit margin is due to the mix of services that make up this business line.