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What is the difference between gross profit and net profit?

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What is the difference between gross profit and net profit?
posted Jun 22, 2017 by Anushka

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Gross profit is sales revenues minus the cost of goods sold.

The term net profit might have a variety of definitions. I assume that net profit means all revenues minus all expenses including the cost of goods sold, the selling, general, and administrative (SG&A) expenses, and the nonoperating expenses. At a corporation it may also mean after income tax expense.

answer Jun 23, 2017 by Raghav Choudhary
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