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DK Essential Managers: Understanding Accounts by Stephen Brookson

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Looking at Gross Profit

The gross profit, or first line of profit, provides an important early measure of a business’s well-being. Ensure that you understand which types of expenses are deducted to calculate gross profit and what the gross margin can tell you.

DK Remember that the gross profit percentage should not be falling.
DK Compare your company’s accounts year to year and with competitors’.
DK Be aware that gross profit measures a company’s basic ...

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