Gross Margin Accounting is the process of determining a business’s profit or loss by subtracting the costs associated with making and selling its products from the total revenue from the sales of those products. It considers not only direct costs such as materials and labor, but also indirect costs such as overhead and marketing expenses. By understanding their gross margin, businesses can make strategic decisions about expanding their product range and pricing to optimize their profits. In short, it’s about making smart choices that make your money work smarter!