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thehornet

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thehornet

Re: rawman post# 17970

Thursday, 11/20/2014 7:16:45 PM

Thursday, November 20, 2014 7:16:45 PM

Post# of 54032
Kinda, sorta. Gross profit and gross margin are basically synonymous; one is simply expressed and a percentage vs. dollar value.

Gross Profit = revenue - cost of goods
Expressed as a dollar value

Gross margin = (R - C)/ R ... Expressed as a percentage

Salaries, distribution costs, etc. are generally accounted for in operational expenses, so as to differentiate the value of creating the product from the various other expenses a company incurs.

I'm not interested in waging a war against anyone, but I thought I'd clear up some confusion.
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