Gross margin is the first convenient stage in the hierarchy of profit levels where costs may be deducted from turnover. The costs at this stage are all directly variable and related to turnover. They are not fixed, do not depend on capacity utilised, can be readily identified, are not allocated from a total of indirect costs and exclude anything in the nature of ‘overhead’.
KeywordsVariable Cost Overhead Cost Current Cost Replacement Cost Staff Cost
Unable to display preview. Download preview PDF.