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What they call "gross profit" is not profit, by definition. It's certainly useful to track $revenue-$cost_of_goods, but you can't call that profit. People are free to use words incorrectly, but they shouldn't expect anyone else to go along with them.


Who chooses the "correct" use of words? Is it you? Wikipedia disagrees with you: https://en.wikipedia.org/wiki/Gross_margin. Maybe you should make your own encyclopedia.


"Gross margin" seems a suitable alternative term.


you mean some person on wikipedia disagrees with him.



What they call "gross profit" is an accounting standard, defined in GAAP, and a standard part of every financial statement.

If we're talking about profit from the lens of a unit sale, we're usually talking about gross profit and gross margin.




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