What does gross mean? Translated from Italian - bad, rude. For what purpose is this not entirely pleasant word used in different areas of our lives? It is actively used in accounting and tax, in transport companies and shipping, lending and insurance, even the best minds of mankind, scientists, have adopted this term. How can one small word with a not very pleasant translation unite all these areas? Gross - what is it?
It's very simple, most often the meaning that is meant by the word "gross" is somewhat different - impure. That is, those who are engaged in calculation, statistics or scientific activities, take into account indicators burdened with something, that is, impure, inaccurate data. It seems that the Italians also have such a meaning for the word brutto, maybe in a figurative sense, but still there. It is believed that Italian merchants once introduced it into the international dictionary of terms, dividing two types of weight: with and without packaging (gross and net). Now in Italy, not brutto is used, but lordo.
School
For the first time we encounter this word there. We are told about gross weight: what it means, what it consists of and how to calculate it. For the sake of order, we repeat the rule, originally from the school: weight, or rather mass, is nothing more than the sum of the mass of goods (net) and containers (packaging). It is when these two indicators are added that the gross is formed. The simplest tasks were to calculate products without packaging. For example, it was necessary to calculate how many kilograms of bananas are in a box if the box itself weighs one kilogram and the total weight is four. In high school, we were already asked about how many servings can be made from 3 kg of potatoes, if the serving is 300 g, and the peels are 30% of the gross weight? Simple arithmetic actions developed our thinking and prepared for more serious and responsible tasks that we will receive after leaving school and university.
Trading
This is where the term "gross weight" is used with incredible frequency. Goods entering stores for sale are brought in packaging. It allows to keep a trade dress, facilitates storage. But they will sell it without pallets and wooden boxes! What to do? Everything is simply banal. Goods accounted for in the gross mass are put on receipt. They will sell in net (this is the opposite meaning, the antipode (that is, net weight)). Net minus gross will give the tare weight.
By the way, very often the gross weight is written on the product label along with the net weight. But buying a chicken in a pallet in a supermarket(a small plastic basket), we know how much the chick itself weighs, and how much what it was put into. Many manufacturers have stopped using the term "gross", and write separately the weight of the goods and the weight of the container / package. This is probably much more convenient for customers.
Science
The next industry where this term is used no less than in school or a store is academia. The gross formula, which is also empirical (experience - translated from Greek), is nothing more than a way to express practical experiments using generally recognized symbols. This is how experimental scientists formulate their discoveries, describing what was obtained empirically.
The direct use of the term is in economics, where theoretical values are "adjusted" to true (empirical) ones. In chemistry, the gross formula is nothing more than a way to provide information about the quantitative composition of molecules, and not about the 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, such empirical (gross formulas) "overgrow" the evidence base and are replaced by exact formulas.
Shipping
Ships and gross - what is this connection? It is clear, if we are talking about cargo in containers (packaging), but what about the ships themselves? In international maritime navigation, this term is used, denoting registration tonnage. Vessel size is calculated in registration tons. In this case, we are not talking about weight / mass, but about volume. This indicator isin mind when talking about the total volume of the premises of the entire vessel. That is, one gross register ton is equal to 2.83 cubic meters. m (100 cu. pounds).
Premises for rent
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 rental premises with utility bills. That is, the standard question asked by tenants to the landlord (and who pays for electricity / gas / water?) May sound simpler (is the gross amount indicated in the contract?). Capacious and concise, isn't it?
Insurance
There is another concept that comes from the word brutto. Most often, this term is used by insurance companies when calculating insurance premiums. The gross premium is paid by the person insured in accordance with the contract. This amount is the gross rate. It, in turn, consists of a net rate and a load. The net rate forms the main fund from which payments will be made in the event of an insured event. The burden, in turn, consists of additional costs that the insurance company is obliged to pay. Roughly speaking, this is a contribution to the maintenance of staff, premises, administrative activities, and, of course, the company's profit. As a result of banal summations, the insurance company calculates the amounts for payments under insurance contracts for the population and enterprises.
Cars and gross
What could it be if we are talking about a car? It is clear if it refers to the mass of the car with and without loading, and if it depends on the amount of taxdeductions, then how? The fact is that the volume of the engine, or rather its power, is subject to mandatory taxation. The higher the indicator, the more expensive the transport fee. Everyone knows!
For many, these words will seem surprising, but still the case exists, and the terminology is even more so. Although in fairness it must be said that in our country this wording has practically become obsolete. The fact is that some manufacturers indicated the engine power in gross. That is, the operation of the unit at the stand, not burdened with mass, additional devices, in the form of a generator or a cooling system pump, was taken as a basis. In reality, the car could move using less power, by 20-30 percent. The result is a decent margin, and so a considerable transport tax. To eliminate such inaccuracies, it is necessary to conduct an examination, where certified workers will confirm that the power is indicated in gross, and not in net, as required by law.
Salary
Remuneration for labor and gross. What is it? Where is the connection? Everything is very simple. Often, employers, wishing to attract workers, voice the payment due to them for work without deducting taxes. The employee is naturally happy, but payday comes when everything falls into place. “On hand” is issued an amount much less than promised. That is, in this case, the remuneration for work is net, and the amount indicated by the employer initially is gross salary.
Balance
By the way, onin the enterprise, this term brutto is used more often than ever. One of the next reasons for using it is the created financial document (balance of expenses and income), 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 "dirty", as it contains articles that show the depreciation of equipment, depreciation of premises and vehicles, etc. Most often, this type of balance is used for scientific or statistical work. In everyday practice, create a net balance.
To be fair, it must be said that the gross balance of a bank, unlike the balance of an ordinary organization, is created a little differently. It has the same indicators as the accounting report, but the number of items is less (as opposed to the gross balance created for a regular organization or enterprise), but the “picture” of what is happening is wider, it creates, so to speak, an enlarged balance sheet.
Profit
Gross revenue is nothing but the total profit of production (enterprise), so to speak, gross. It does not take into account such items of expenditure as taxes and wages, depreciation of vehicles and premises. The total amount of all receipts is the gross revenue. The net profit of the enterprise is visible from the net balance sheet, where the net revenue is clearly stated.
Population
Statistical accounting is carried out by calculating the gross coefficient. This term does not denote any exact numbers, but, roughly speaking, buildsillusory plans. The coefficient is calculated according to the formula, and the result makes it clear how many girls can give birth to girls (namely girls, not boys), who in the future will become mothers and give birth to their children. 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 birth rate.
P. S
From the foregoing, we can conclude that a simple word that has an elementary, at first glance, meaning, in fact, can be much more capacious, used in accounting and tax, in transport companies and shipping, lending and insurance, and most importantly, quite reasonably.
Let's repeat once again not so much all the meanings of the term gross as the industries and directions in which this word is used, and this is done on a global scale:
- Weight of goods in a container.
- Registered tonnage of the vessel.
- Gross profit of a business, bank, insurance company, etc.
- Organization balance sheet (general accounting).
- The full cost of the premium.
- Car engine size.
- Salary.
- Theoretical data in generally accepted symbols.
- Premises for rent.
- Accounting for the birth rate of the population.
- Science and education.
