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BUSINESS FINANCING GLOSSARY

Gross Profit

Revenue minus the cost of goods sold, before operating expenses. What’s left to cover overhead and profit.

Related terms

Cost of Goods Sold (COGS)→The direct costs of producing what you sell, mainly materials and labor. Revenue minus COGS is your gross profit.Operating Expenses (OpEx)→The ongoing costs of running the business — rent, payroll, utilities, marketing — excluding the direct cost of goods.

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