The amount, or difference, by which sales revenue exceeds the cost of sales, i.e. costs incurred in getting the goods ready for sale such as purchases, direct labour costs and other direct costs in manufacturing. Loss of gross profit is insured under a business interruption insurance that usually provides cover on the difference basis. An older way of calculating gross profit was to add the net profit to the standing charges of the business.
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Net profit plus the insured’s standing charges