- For companies, Gross income is revenue minus the cost of goods sold. Also called gross profit.
- For workers, Gross income is earnings before taxes are taken out or other adjustments are made. The figure after adjustments is net income.
A company's gross income/gross profit is a measure of how efficiently it is doing business, because it shows how much money is left over after the costs needed to produce and sell the product are taken out. Check out the gross profit entry for a fuller explanation.
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