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Gross Margin

Revenue minus the direct cost of goods or services, expressed as a percentage, available to cover overheads and profit.

The difference between revenue and the direct costs of delivering goods or services (cost of sales or cost of goods sold). Gross margin represents the amount available to cover indirect costs, overheads, and profit, and is usually expressed as a percentage of revenue. See also: Gross Profit.

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Related Glossary Terms

The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
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