Gross refers to the total amount or quantity before deductions or expenses. In accounting, gross refers to the total revenue generated from sales before any expenses are deducted. Gross profit is calculated by subtracting the cost of goods sold from gross revenue.
Gross can also be used to describe other types of quantities, such as the total weight of a shipment or the total number of items produced in a production run.
Here are some examples of how the word “gross” is used in business:
- Gross revenue: The total amount of money generated from sales before any expenses are deducted.
- Gross profit: The amount of profit left after the cost of goods sold is deducted from gross revenue.
- Gross margin: The percentage of gross revenue that remains after the cost of goods sold is deducted.
- Gross weight: The total weight of a shipment before any packaging or other materials are added.
- Gross number: The total number of items produced in a production run before any defects or rejects are removed.