![]() It is subtracted from net revenues in order to arrive at the gross margin generated by a business. COGS) are deducted from revenue.COGS is the cost of those goods associated with product sales. ![]() The gross profit metric represents the earnings remaining once direct costs (i.e. For example, a company’s rental expense for a facility remains fixed based on a signed rental agreement. Opex tends to consist of fixed costs, which means the value remains relatively constant regardless of the level of production output.
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