Why is Gross Profit important?
Gross Profit is defined as income for a product or service minus the direct costs of delivery.
It’s importance lies in the fact that some income comes with expenditure baked into the sale. We then pay our overheads and make a profit with what is less.
The Gross Profit Margin tells us if we are keeping control of the input costs that are inherent in the product or service we are selling.
