Accounting (noun): the process of recording, classifying, and summarizing financial transactions to provide information that is useful in decision-making. Gross profit (noun): the excess of revenue over cost of goods sold. Calculating gross profit (verb): the process of subtracting cost of goods sold from revenue.
Gross profit is a key financial metric that measures a company’s profitability. It is used to assess the efficiency of a company’s operations and to compare its performance to other companies in the same industry. Gross profit has been used for centuries as a measure of financial performance.