Courses / Earnings Power / Gross Profit

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Gross Profit (2:49)

Gross Profit is the profit generated by the core products and services that the business sells. Gross Profit = Revenue - COGS.

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Eddie Wu
3 months ago

How do we classify employees’ wage? I understand we classify management‘s salary into G&A, but do we count regular employees’ wages as COGS or G&A as well. For lululemon as a example, the COGS consists cost of making clothes, cost of running factory, cost of running physical and internet store, so do we include cost of having salesperson as well in COGS?

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Eddie Wu
3 months ago
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Got it! I understand the concept of employee’s wage now!

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