What does gp stand for in retail

GP stands for Gross Profit - a company's total revenue (equivalent to total sales) minus the cost of goods sold.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement or can be calculated with this formula:

Gross profit = revenue - cost of goods sold

Also called "gross margin," "sales profit" and "gross income".

Gross profit assesses a company's efficiency at using labor and supplies. The metric only considers variable costs, that is, costs that fluctuate with the level of output: materials; direct labor, assuming it is hourly or otherwise dependent on output levels; commissions for sales staff; credit card fees on customer purchases; equipment, perhaps including usage-based depreciation; utilities for the production site; shipping; etc.

As generally defined, gross profit does not include fixed costs, or costs that must be paid regardless of the level of output: rent, advertising, insurance, salaries for employees not directly involved in production, and office supplies.

Read more about Gross Profit at Investopedia.com.

Many people who are entering the retail industry – either as a store manager, owner, or vendor – need help learning retail terminology.

Check out a compilation of key retail terms from RetailerTrainingServices.com.

Tags: gross profitretail 
Monday, September 18 2017
Source: http://www.investopedia.com/terms/g/grossprofit.asp