Q:

What is a gross amount?

A:

Quick Answer

A gross amount is used to refer to the total amount of something that was created or received as the result of an activity. The term is commonly used to refer to profit or revenue, but it can also be used in terms of the total weight of an object.

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Full Answer

Gross weight, for example, refers to the total weight of any object plus any packaging or accessories that are attached to it. Net weight, on the other hand, refers to the actual weight of the object without packaging. In addition, net income means any money accrued after taxes and other deductions (payroll, admin and other costs) have been taken off the gross income.

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Related Questions

  • Q:

    What is the gross profit percentage?

    A:

    The gross profit percentage, or gross margin, tells the percentage of money a company keeps from its revenue after direct costs are accounted for, and it indicates a company's gross profit margin. To determine the gross profit percentage for a business selling goods, a person takes the company's sales and then subtracts factory ahead, direct materials and direct labor. The person then divides the resulting value by sales to get the gross profit percentage.

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  • Q:

    How do you calculate gross profit?

    A:

    To calculate gross profit, subtract the cost of goods sold from the amount of total sales for the specified time period. The result is the pre-expense profit derived by the company, also known as the gross profit.

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  • Q:

    How is gross profit percentage calculated?

    A:

    To calculate the gross profit percentage, also known as the gross profit margin, the gross profit should be divided by the total revenue and then multiplied by 100. This is the percentage of money that the company makes from selling goods or services after subtracting the costs of producing them. The higher the percentage, the healthier the company's profits are before the subtraction of overhead costs.

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  • Q:

    How do you calculate marginal revenue?

    A:

    To calculate marginal revenue, evaluate the amount that you collect per increase in production of a single unit. Gather invoices and ledgers to get total revenue to match against revenue change.

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