Gross profit
The gross profit ( English gross profit is) in the operating economics of the balance between the revenue and the manufacturing cost .
General
The word component "result" makes it clear that it is a balance or subtotal, while "gross" indicates that not all expenses have been taken into account. The manufacturing costs only include those that led to the sales volume . So that manufacturing costs are not included in which products to stock increase; these products are also not included in sales. In contrast, those manufacturing costs are taken into account that were incurred for products that were sold from inventory. The gross profit on sales is the balance of sales and the direct production costs (in law: "Production costs of the services provided to generate sales").
Outline schemes
The legal term “gross profit” only appears in commercial and accounting law in the cost of sales method in the income statement ( Section 275 (3 ) HGB ). He's a subtotal there:
Umsatzerlöse - Herstellungskosten der zur Erzielung der Umsatzerlöse erbrachten Leistungen = Bruttoergebnis vom Umsatz
This subtotal ultimately leads to the net income / net loss as the final result. The total cost method knows the total output, which is not comparable with the gross result, as the subtotal .
If you compare the total cost method, which is possible as an alternative in accordance with Section 275 (2) HGB, to the cost of sales method, the following synopsis results:
Position Gesamtkostenverfahren Umsatzkostenverfahren
nach § 275 HGB
Position 1 Umsatzerlöse Umsatzerlöse
Position 2 +/- Bestandsveränderung - Herstellungskosten
Position 3 + aktivierte Eigenleistungen = Bruttoergebnis vom Umsatz
= Gesamtleistung
Position 5 - Materialkosten
= Rohertrag
Position 6 + sonstige betriebliche Erträge
Position 4 + sonstige betriebliche Erträge
= Rohergebnis = Rohergebnis
In the total cost method, changes in inventories (+ inventory increase / inventory reduction) and own work capitalized must be taken into account in the sales revenue . The manufacturing costs are included. In contrast, with the cost of sales method, gross profit only includes those manufacturing costs that originate from production in the current financial year and from the inventory produced in previous periods and sold in the financial year.
economic aspects
Since the production costs also include the valuation of the finished and semi-finished products , this - via the production costs - also influences the gross profit. Administrative , sales , research and development costs and other operating expenses and income have not yet been deducted from gross profit.
The gross profit is close to the contribution margin accounting , but is not identical to it because it represents a partial cost accounting. The gross profit must not be confused with the gross profit , which is calculated as the difference between the total output and the material costs. The production costs of the gross profit include not only the material costs, but also pro rata personnel costs and depreciation . The gross margin in the sense of the gross result cannot be determined when using the total cost method, while no total output can be calculated using the cost of sales method. Both methods have in common the determination of the raw result .
The gross profit indicates how profitable the production is , taking into account only the sales-related costs .
Individual evidence
- ^ Silvia Rogler, Income statement based on the cost of sales method , 1990, p. 74
- ↑ Wolfgang Nahlik, Practice of the annual financial statement analysis , 1989, p. 14
- ↑ Nadine Holzapfel, The conversion of the total cost to the cost of sales method according to IAS / IFRS , 2008, p. 37
- ↑ Wolfgang Nahlik, Practice of the annual financial statement analysis , 1989, p. 14
- ↑ Gerrit Brösel / Rainer Kasperzak (eds.), International Accounting, Examination and Analysis , 2004, p. 566