Profit - SS2 Commerce Past Questions and Answers - page 1

Expenses from revenue

Cost of goods sold (COGS)

Operating expenses, taxes, and interest

Selling goods or providing services

All expenses

Gross profit is the profit made from business operations before deducting the cost of goods sold (COGS), providing insight into the profitability of the core operations.

The key difference is that gross profit represents profit before deducting all expenses, focusing on the cost of goods sold, while net profit is the final profit earned after deducting all expenses, including operating expenses, taxes, and interest.