Wednesday, September 09, 2009

In retail gross profit is not gross profit

Gross Profit = Sales - Cogs of Goods Sold (COGS)


Cost of goods sold is calculated differently for a merchandising business than for a manufacturer.

In manufacturing you include the cost of machines and workers, in retail store rent and sales staff are not included....

Comments, questions or E-mails welcome: ajbrenninkmeijer (a) cs.com

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