Gross Profit

The gross profit on sales of the balance is from sales and the direct cost of production ( in the Act: Cost of services rendered to generate revenue services ) referred.

There is a defined in § 275 HGB concept of profit and loss account. Gross profit is used as a first intermediate size on cost of sales method.

Administrative, sales, research and development expenses and other operating income and expenses are not deducted.

The gross profit tells you how profitable is the production considering only the revenue-related costs.

• Operating performance measure