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I asked my boss, who is the CFO of NuGenesis Technologies Corporation ( No, you haven't heard of it... unless you are an in a pharmaceutical company )... gross profit is unquestionably revenue minus cost of sales... which is material cost, not payroll ( outside of services... payroll for system engineers ( installation, validation, training, consulting ) , for example, counts as cost of sales, plus any cost taken for resale... CD cases, hardware. ), etc... Not 'expenses'. Lots of other expenses are taken into account for net profit that are not cost of sales... pre-sales, advertising, corporate expenses ( finance, adminsitration ), R&D, quality engineering... do I need to go on?
DV
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