Final answer:
Gross profit, also known as gross margin, is a measure of a company's profitability that shows how much money is left over after subtracting the cost of goods sold (COGS) from the total revenue.
Step-by-step explanation:
Gross profit, also known as gross margin, is a measure of a company's profitability that shows how much money is left over after subtracting the cost of goods sold (COGS) from the total revenue. It can be calculated using the following formula:
Gross Profit = Total Revenue - COGS
For example, if a company has a total revenue of $1,000 and COGS of $500, its gross profit would be $500.
Therefore, the statement 'Gross profit is a measure of profitability that shows how much money is left after subtracting COGS from total revenue' is true.