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 combine with all these directions with a not very pleasant translation? Gross - what is it?
Everything is very simple, most often the meaning, which is meant by the word "gross", is somewhat different - unclean. That is, those involved in calculation, statistics or scientific activity take into account indicators burdened by something, that is, impure, inaccurate data. It seems that the Italians have such a meaning in the word brutto, maybe in a figurative sense, but still have it. It is believed that Italian merchants once introduced it into the international dictionary of terms, separating two types of weight: with and without packaging (gross and net). Now in Italy it is not brutto that is used, but lordo.
School
For the first time we come across this word there. We are told about the gross weight: what it means, what it is made up of and how to calculate. For the sake of order, we repeat the rule, from the school: weight, or rather mass, is nothing but the sum of the mass of the goods (net) and containers (packaging). It is with the addition of these two indicators that gross is formed. The simplest tasks were computing products without packaging. For example, it was necessary to calculate how many kilograms of bananas are in a box, if it itself weighs one kilogram and the total weight is four. In high school, we were already asked about how many servings can be prepared from 3 kg of potatoes, if the portion is -300 g, and peeling is 30% of the gross weight? Simple arithmetic actions developed our thinking and prepared for more serious and responsible tasks that we will receive when we leave the walls of the school and university.
Trade
This is the place where the term "gross mass" is used with incredible frequency. Goods that are delivered to stores for sale are brought in packaging containers. This allows you to maintain presentation, facilitates storage. But they will sell it without pallets and wooden boxes! What to do? Everything is simple. A goods accounted for in the gross mass is placed on arrival. Will be sold in net (this is the opposite value, the opposite (that is, net weight)). Net minus gross will give the tare weight.
By the way, very often the gross weight is registered on the product label along with the net weight. But when buying a chicken in a pallet in a supermarket (a small plastic basket), we know how much the nestling weighs, and how much it is put into. Many manufacturers have ceased to use the term "gross", and write separately the weight of the goods and the weight of the containers / packaging. Probably, it is much more convenient for buyers.
The science
The next industry, where this term is used no less than in a school or a store, is a scientific activity. The gross formula, which is empirical (experience is translated from Greek), is nothing but a way to express practical experiments with the help of universally recognized symbols. This is how scientists-experimenters formulate their discoveries, describing what was obtained experimentally.
There is a direct use of the term in economics, where theoretical meanings “drive” to true (empirical). In chemistry, the gross formula is nothing but a way to provide information on the quantitative composition of molecules, and not on 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’s clear, if we are talking about cargo in containers (packaging), but what about the ships themselves? In international shipping, this term is used to denote registration tonnage. The size of the vessel is calculated in registration tons. This is not about weight / mass, but about volume. It is this indicator that is meant when talking about the total volume of the premises of the entire vessel. That is, one gross register ton is 2.83 cubic meters. m (100 cubic pounds).
Rental 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 rental premises with utility bills. That is, the standard question asked by the tenants to the lessor (and who pays for the light / gas / water?) May sound simpler (does the contract indicate the gross amount?). Capacitive and concise, is not it?
Insurance
There is another concept derived 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 who insures in accordance with the contract. This amount is the gross rate. She, in turn, consists of a net rate and load. The net rate forms the main fund from which payments will be made in the insured event. The load, in turn, consists of additional costs that the insurance company must pay. Roughly speaking, this is a contribution to the maintenance of personnel, premises, administrative activities, and, of course, the company's profit. As a result of trivial 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 cars? It is clear, if we are talking about the mass of the car with and without loading, and if it depends on the amount of tax deductions, 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 nevertheless a case exists, and the terminology is even more so. Although in fairness it must be said that in our country this formulation has practically outlived itself. The fact is that some manufacturers indicated engine power in gross. That is, the work of the unit on the stand, not burdened by mass, with 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, 20-30 percent. The result is a decent margin on the already considerable transport tax. To eliminate this kind of inaccuracy, it is necessary to conduct an examination where certified employees will confirm that the capacity is indicated in gross and not in net, as required by law.
The salary
Remuneration for labor and gross. What is it? Where is the connection? Everything is very simple. Often, employers, wanting to attract workers, voice the amount due to them for work without taxes. The employee, of course, is happy, but the salary day comes when everything falls into place. “On hand” issued an amount much less than promised. That is, in this case, the remuneration for the work is net, and the amount indicated by the employer initially is the gross salary.
Balance
By the way, in the enterprise this term brutto is used more than ever. One of the next reasons for application 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 to be “dirty”, since it contains articles that show 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.
In fairness, you need to say that the gross balance of the bank, in contrast to the balance sheet of an ordinary organization, is created in a slightly different way. It has the same indicators as the accounting report, but the number of articles has a smaller one (as opposed to the gross balance created for a regular organization or enterprise), but it shows a wider picture of what is happening and creates, so to speak, an enlarged balance.
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 salaries, depreciation of vehicles and premises. The total amount of all arrivals is gross revenue. The net profit of the enterprise is visible from the net balance, where the net revenue is clearly stated.
Population
Statistical accounting is carried out by calculating the gross coefficient. This term does not mean any exact numbers, but, roughly speaking, it builds illusory plans. The coefficient is calculated according to the formula, and the result makes it clear how much one girl 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 arbitrary, show the 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.
PS
From the foregoing, we can conclude that a simple word that has an elementary, at first glance, meaning, in fact, can turn out to be much more capacious, used in accounting and tax, in transport companies and shipping, lending and insurance, and most importantly, quite reasonably .
Let's once again repeat not so much all the meanings of the term gross, but rather the industries and directions in which the given word is used, and this is being done on a global scale:
- Product weight in containers.
- Register tonnage of the vessel.
- Gross profit of an enterprise, bank, insurance company, etc.
- Organization balance sheet (general accounting).
- The full cost of the premium.
- Engine displacement
- Wage.
- Theoretical data in universally recognized symbols.
- Rental of premises.
- Birth control.
- Science and education.