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Gross Profit
Gross Profit is the revenue from sales minus the cost of goods sold, indicating the profitability of a company before accounting for operating expenses, interest, and taxes.
Average Cost Method
A technique for inventory valuation and cost determination that calculates inventory and cost of goods sold based on the average price of all units available during the period.
Average Cost Per Unit
The total cost of production divided by the total number of units produced, providing a cost measure per single unit.
Inventory
The goods and materials a business holds for the ultimate goal of resale or production.
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