GROSS WEIGHT VS NET WEIGHT

gross weight  vs  net weight

We often encounter the words ‘gross and net’ when it comes to the salary, weight, lease payments, taxation, economics and accounting. This article aims to differentiate specific terms which are gross weight and net weight.

From the word itself “gross”, it states the aggregate, overall, the totality or whole of all good, packaging, labor cost, factory overheads, other manufacturing costs and exclusive of any selling and administrative expenses and taxes, as a result of the activities of production. Furthermore, the volume of the production activities is measured in a cost per unit basis thereafter a mark-up per unit is computed. The price per unit is then multiplied by the quantity produced, resulting to the whole sales volume. Consequently, the cost of the production is deducted from gross sales resulting in the gross weight. The cost of the production comprises of any inventorial or manufacturing cost such as raw materials, labor cost and factory overhead cost.

  Gross weight Net weight
Denote Total weight of any product including its container/packaging. Weight of the product
Packaging Included Not included

On the other hand, when we speak of the term “net weight”, it refers to the residual value, amount, weight or remaining units after deducting the related expenses such as marketing and general expenses from the gross weight.

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