The financial encyclopedia uses cookies to improve your user experience. Find out more here!



 

 


 

Gross margin
 

 

In a retail business, the margin on a sale which is the difference between the purchase price of a good and the price paid by the retailer, i.e. it makes no allowance for overheads, stock appreciation or tax. The gross margin is sometimes loosely referred to as gross profit, but this tenn has a different, strictly defined meaning in accounting

Reference: The Penguin Business Dictionary, 3rd edt.