Gross - what is it? Weight, rate, revenue, balance and gross formula

What does gross mean? In translation from Italian - bad, rude. For what purpose is this not a very pleasant word used in different spheres of our life? It is actively used in accounting and taxation, in transport companies and shipping, lending and insurance, even the best minds of mankind, scientists, have adopted this term. How can one small word combine with these not very pleasant translations? Gross - what is it?

Everything is very simple, most often the meaning that is meant by the word "gross", somewhat different - impure. That is, those who are engaged in calculating, statistics or scientific activities, take into account indicators burdened by something, that is, impure, inaccurate data. It seems that the Italians have such a meaning for the word brutto, maybe in a figurative sense, but still there is. It is believed that it was once introduced into the international vocabulary of terms by Italian merchants, sharing two types of weight: with and without packaging (gross and net). Now in Italy is used not brutto, and lordo.

School

For the first time we encounter this word there. We are told about the gross weight: what does this mean, what is the sum and how to calculate. For the sake of order, we repeat the rule, coming from school: weight, or rather mass, is nothing more than the sum of the mass of the goods (net) and the packaging (packaging). It is during the addition of these two indicators that gross is formed. The simplest tasks were to calculate the products without packaging. For example, it was necessary to calculate how many kilograms of bananas in the box, if she weighs one kilogram, and the total weight is four. In the senior classes we were already asked about how many portions can be made from 3 kg of potatoes, if the serving is -300 g, and the cleaning is 30% of the gross weight? Simple arithmetic actions developed our thinking and prepared for more serious and responsible tasks that we will receive, coming out of the walls of the school and university.

Trade

This is the place where the term "gross weight" is used with an incredible frequency. Goods coming to stores for sale are brought in a packing container. This allows you to preserve the presentation, facilitates storage. But it will be sold without pallets and wooden boxes! What to do? Everything is simple and simple. The parish is placed on the goods, recorded in gross weight. Sell will be in net (this is the opposite meaning, antipode (that is, net weight)). The net minus gross will give the weight of the container.

By the way, very often the gross weight is registered on the product label along with the net weight. But buying a chicken in a supermarket in a pallet (a small plastic basket), we know how much the chick itself weighs, and how much that was put into it. Many manufacturers have stopped using the term "gross", but write separately the weight of the product and the weight of the packaging / packaging. Probably, it is much more convenient for buyers.

The science

The next branch, where this term is used no less than in a school or a shop, is scientific activity. The gross formula, which is empirical (experience in Greek), is nothing more than a way of expressing practical experiments with the help of universally recognized symbols. So scientists formulate their discoveries, experimenters, describing what has been obtained empirically.

Direct use of the term is in the economy, where the theoretical values are "driven" to the true (empirical). In chemistry, the gross formula is nothing more than a way to provide information about the quantitative composition of molecules, rather than structural or isometric. In physics, this phrase is used when it comes to the described experience, but not confirmed by a sufficient number of arguments. Over time, similar empirical (gross-formulas) "acquire" evidence base and are replaced by precise formulas.

Shipping

Ships and gross - what is this connection? It is clear, if it is a question of the cargo in containers (packaging), and the ships themselves do it? In international maritime shipping this term is used, denoting registration tonnage. The vessel's size is calculated in registration tons. This is not a weight / mass, but a volume. It is this indicator that is meant when one speaks of the total volume of the vessel's entire space. That is, one gross-register ton is equal to 2.83 cubic meters. M (100 cubic pounds).

Rent of premises

This is another industry where the term "gross" is appropriate. In this context, it has the following meaning: the amount of remuneration for the use of the rented premises with utility bills. That is, the standard question asked by tenants to the landlord (and who pays for light / gas / water?) Can sound simpler (the contract shows the gross amount?). Emko and laconically, is not it?

Insurance

There is one more concept, formed from the word brutto. Most often this term is used by insurance companies when calculating insurance premiums. The person who is insured under the contract pays a gross premium. This amount is the gross rate. It, in turn, consists of net-rate and load. The net rate forms the basic fund, from which in the insurance case payments will be made. The load, in turn, consists of additional costs that the insurance company must pay. Roughly speaking, this is a contribution for the maintenance of staff, premises, administrative activities, and, of course, the company's profit. As a result of banal summing up, the insurance company calculates the amounts for payments under insurance contracts for the population and enterprises.

Cars and Gross

What can it be when it comes to auto? It is clear, if we talk about the mass of the car with and without loading, and if it proportionally depends on the amount of tax deductions, then how? The fact is that the volume of the engine, more precisely its capacity, is subject to compulsory taxation. The higher the figure, the more expensive the transport fee. Everybody knows!

For many, these words seem surprising, but still the case exists, and the terminology, and even more so. Although it is fair to say that in our country this wording has almost outlived itself. The fact is that some manufacturers indicated the engine's power in gross. That is, the work of the unit was taken as a basis on the stand, not burdened with mass, with additional devices, in the form of a generator or a pump of the cooling system. In reality, the car could move using less than 20 percent power. As a result, you get a decent mark-up, on and so a considerable transport tax. To eliminate this kind of inaccuracies, it is necessary to carry out an examination, where the certified employees confirm that the power is indicated grossly, and not net, as required by law.

Salary

Compensation for work and gross. What is it? Where is the connection? Everything is very simple. Often, employers, wishing to attract workers, voice the work that they owe for their work without deduction of taxes. The employee is naturally happy, but the pay day comes, when everything falls into place. "In his hands" is given a much lower amount than promised. That is, in this case, the remuneration for the work is net, and the amount specified by the employer initially is gross wages.

Balance

By the way, in the enterprise this term brutto is used more than ever. One of the next reasons for applying is the created financial document (balance of expenses and revenues), which allows you to summarize reliable information, fully see the whole picture of what is happening in the company, minimize costs, increase profits. The gross balance is considered to be "dirty", since it contains articles showing depreciation of equipment, depreciation of premises and transport, etc. Most often this type of balance is used for scientific or statistical work. In daily practice, create a net balance.

For the sake of justice it is necessary to say that the bank's gross balance, unlike the balance of the ordinary organization, is created somewhat differently. It has the same indicators as the accounting report, but the number of articles has a smaller (as opposed to the gross balance created for a regular organization or enterprise), but the "picture" of what is happening shows wider, creates, so to speak, a larger balance.

Profit

Gross revenue is nothing more than the total profit of production (enterprise), so to speak, gross. It does not take into account such expense items as taxes and salaries, depreciation of transport and premises. The total amount of all the parishes is gross revenue. The company's net profit is visible from the net balance sheet, where the net proceeds are clearly stated.

Population

Statistical accounting is carried out by calculating the gross coefficient. This term does not mean any exact figures, but, roughly speaking, it builds illusory plans. The coefficient is calculated by the formula, and the result makes it clear how much one girl will be able to give birth to girls (girls, not boys) who will become mothers in the future and bring their children to the light. These figures are very conditional, they show an approximate replacement of the population, not taking into account mortality. It should be noted that the calculation is carried out in two directions: the gross reproduction rate of the population and the gross-fertility rate.

PS

From the foregoing, we can conclude that a simple word that has an elementary meaning at first glance may in fact be much more capacious, used in accounting and taxation, in transport companies and shipping, credit and insurance, and most importantly, it is justifiable .

Let's repeat not so much all the meaning of the gross term, how many industries and directions in which the word is used, and this is done on a global scale:

1. The weight of the goods in a container.
2. Register tonnage of the vessel.
3. The gross profit of the enterprise, bank, insurance company, etc.
4. The balance of the organization (general accounting).
5. The full cost of the insurance premium.
6. The volume of the car engine.
7. Wage.
8. Theoretical data in universally recognized symbols.
9. Rent of premises.
10. Accounting for the birth rate of the population.
11. Science and education.