What Is The Difference Between Gross Profit Margin And Gross Margin?

1.	What Is The Difference Between Gross Profit Margin And Gross Margin?
Answer» The use of the terms such as gross margin and gross profit margin OFTEN varies by the person using the terms. Some PEOPLE prefer to use gross margin instead of gross profit when referring to the dollars of gross profit. Often they want to avoid the use of the word profit because the selling and ADMINISTRATIVE expenses must also be COVERED. Recall that gross profit is defined as Net SALES minus Cost of Goods Sold. The use of the terms such as gross margin and gross profit margin often varies by the person using the terms. Some people prefer to use gross margin instead of gross profit when referring to the dollars of gross profit. Often they want to avoid the use of the word profit because the selling and administrative expenses must also be covered. Recall that gross profit is defined as Net Sales minus Cost of Goods Sold.

Answer»

The use of the terms such as gross margin and gross profit margin OFTEN varies by the person using the terms. Some PEOPLE prefer to use gross margin instead of gross profit when referring to the dollars of gross profit. Often they want to avoid the use of the word profit because the selling and ADMINISTRATIVE expenses must also be COVERED. Recall that gross profit is defined as Net SALES minus Cost of Goods Sold.

The use of the terms such as gross margin and gross profit margin often varies by the person using the terms. Some people prefer to use gross margin instead of gross profit when referring to the dollars of gross profit. Often they want to avoid the use of the word profit because the selling and administrative expenses must also be covered. Recall that gross profit is defined as Net Sales minus Cost of Goods Sold.

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