Gross Profit VS Gross Margin
You might think that whether these two terms are the same or not. Some say that these are the same and some oppose it. In fact, these two terms are different. Let me explain you in the below section: What is Gross Profit Gross Profit is the difference between Your Business Net Sales - Cost of Goods Sold (Cost of Sales) and it is the amount expressed in Rs . or Dollar or whatever Currency your country has. If Cost of Sales is more tha n Net Sales , the n the b usi ness suffers Gross Loss during the accounting cycle. Whereas Gross Margin It is the ratio of Gross Profit to Net Sales. It shows the relationship between these two Accounting Terms . Mathematically , we write it as: Gross Margin = Gross Profit / Net Sales x 100 Gross Margin is expressed in Percentage (%) as it shows the relationship between Gross Profit / Income To Net Sales. For Exa...