PDSnet Glossary

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Definition

<p style="text-align: justify;">A <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">company</span>'s <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">profit</span> after its direct or variable <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">costs</span> have been deducted. Typically, the gross profit is the final figure in the company's <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">trading account</span> which begins with <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">sales</span> and subtracts variable costs like the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">cost of sales</span> and sales <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">commissions</span>. The gross profit then goes to the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">profit and loss account</span> where the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">fixed costs</span> are subtracted.</p>