The "Gross profit" is the amount that remains when the direct costs are deducted from the revenues. These direct costs typically include the cost of goods sold (COGS), which are the costs directly associated with the production or sale of a product or service. The gross profit thus indicates the amount that a company has earned after deducting the direct costs and is an important indicator of a company's profitability.
Typical functions of software in the "Gross profit" domain include:
Sales data capture: The software captures sales data, including quantities sold and selling prices for products or services.
Calculation of direct costs: The software calculates the direct costs by subtracting the cost of goods sold from the revenues.
Gross profit analysis: The software allows for the analysis of gross profit for specific periods or products to gain insights into the profitability of individual products or the overall success of the company.
Comparison with benchmarks: The software enables the comparison of gross profit with industry benchmarks or internal targets to assess the company's performance and identify potential improvement opportunities.