What is Gross income?

In short, gross can be best defined as the amount without any deduction. This essentially means that gross income is:

  • A person’s overall personal income is taken into account before the deduction of taxes and other applicable surcharges.
  • An organization’s total revenue excluding the cost of all goods or services sold. This is also known as the gross profit or gross margin.

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It is worth noting here that gross income is an essential figure when evaluating or analyzing an organization. It represents some fundamentals associated with how effectively and efficiently a management utilizes labor as well as supplies in the entire production process.

Do remember though, gross income tends to vary drastically from industry to industry.

As for individuals, this is precisely the figure when someone asks them how much they gross a month (or a year).

Edited and Updated 15th February 2014

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