Class 12 Exam > Class 12 Questions > Meaning of gross fee?
Start Learning for Free
Meaning of gross fee?
Verified Answer
Meaning of gross fee?
The concepts of gross and net income have different meanings, depending on whether a business or a wage earner is being discussed. For a company, gross income equates to gross margin, which is sales minus the cost of goods sold. Thus, gross income is the amount that a business earns from the sale of goods or services, before selling, administrative, tax, and other expenses have been deducted. For a company, net income is the residual amount of earnings after all expenses have been deducted from sales. In short, gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included.
For example, a business has sales of $1,000,000, the cost of goods sold of $600,000, and selling expenses of $250,000. Its gross income is $400,000 and its net income is $150,000.
The main flaw in the use of gross and net income for a business is that the gross income figure is more likely to be closely related to the results of operations, while net income can include a variety of non-operational expenses, gains, and/or losses. Thus, the two calculations are based on different sets of information and are used in different types of analysis.
This question is part of UPSC exam. View all Class 12 courses
Most Upvoted Answer
Meaning of gross fee?
The Scheme Document defines “gross fee income” as follows:
"Gross Fee Income" in relation to a Practitioner, means the gross income earned by the Practitioner from Legal Practice (including income derived by a service administration or trustee company or trust insofar as its activities relate to the Practitioner's practice except any such income derived from the Practitioner or a practice of which he or she is a partner or director), but does not include –
(a) Income derived by a company from the investment of money;
(b) Salary or wages earned by a Practitioner in relation to his or her employment by any other Practitioner; or
(c) Fees or other income earned by a Practitioner who is a director or Employee of a Practitioner for which he or she is liable to account to his or her employer.
Lawguard Management has determined that the gross income disclosed on your tax return for the relevant financial year, in accordance with either the `Cash Based Accounting System` or `Accrual Based Accounting System`, will fall within the above definition. All business and overhead expenses, and any other deductibles are irrelevant.
Community Answer
Meaning of gross fee?
Gross Fee: Meaning and Explanation
Gross fee refers to the total or full amount of money charged for a particular service or product before any deductions or expenses. It is the initial cost or price that is set by a provider or seller, including all applicable taxes and fees. Gross fee is often used in various industries, including finance, real estate, education, and healthcare.
Explanation:
Gross Fee in Finance:
In the financial sector, gross fee is commonly used to describe the total fees charged by financial institutions such as banks, investment firms, and insurance companies. This includes fees for services like account maintenance, transaction fees, investment advisory fees, and insurance premiums. The gross fee is the amount that customers need to pay upfront before any deductions or discounts.
Gross Fee in Real Estate:
In the real estate industry, gross fee refers to the total amount charged by real estate agents or brokers for their services in assisting with property transactions. This can include fees for listing a property, marketing expenses, and commission fees based on a percentage of the property's sale price. The gross fee is the total amount that the seller or buyer needs to pay before any deductions or negotiations.
Gross Fee in Education:
In the field of education, gross fee is the entire cost of tuition and other fees charged by educational institutions. This includes tuition fees, registration fees, examination fees, and other charges related to a specific course or program. The gross fee is the total amount that students or their families need to pay to enroll in the educational institution.
Gross Fee in Healthcare:
In the healthcare sector, gross fee refers to the total amount charged by healthcare providers, including doctors, hospitals, clinics, and medical facilities. This includes fees for consultations, medical procedures, surgeries, tests, and medications. The gross fee represents the total cost that patients or their insurance providers need to pay for the healthcare services received.
Conclusion:
Gross fee is the full amount charged for a service or product before any deductions or expenses. It is used in various industries to represent the initial cost or price set by providers or sellers. Understanding the concept of gross fee is important for consumers and businesses alike to accurately calculate and plan for the total cost of a service or product.
Gross fee refers to the total or full amount of money charged for a particular service or product before any deductions or expenses. It is the initial cost or price that is set by a provider or seller, including all applicable taxes and fees. Gross fee is often used in various industries, including finance, real estate, education, and healthcare.
Explanation:
Gross Fee in Finance:
In the financial sector, gross fee is commonly used to describe the total fees charged by financial institutions such as banks, investment firms, and insurance companies. This includes fees for services like account maintenance, transaction fees, investment advisory fees, and insurance premiums. The gross fee is the amount that customers need to pay upfront before any deductions or discounts.
Gross Fee in Real Estate:
In the real estate industry, gross fee refers to the total amount charged by real estate agents or brokers for their services in assisting with property transactions. This can include fees for listing a property, marketing expenses, and commission fees based on a percentage of the property's sale price. The gross fee is the total amount that the seller or buyer needs to pay before any deductions or negotiations.
Gross Fee in Education:
In the field of education, gross fee is the entire cost of tuition and other fees charged by educational institutions. This includes tuition fees, registration fees, examination fees, and other charges related to a specific course or program. The gross fee is the total amount that students or their families need to pay to enroll in the educational institution.
Gross Fee in Healthcare:
In the healthcare sector, gross fee refers to the total amount charged by healthcare providers, including doctors, hospitals, clinics, and medical facilities. This includes fees for consultations, medical procedures, surgeries, tests, and medications. The gross fee represents the total cost that patients or their insurance providers need to pay for the healthcare services received.
Conclusion:
Gross fee is the full amount charged for a service or product before any deductions or expenses. It is used in various industries to represent the initial cost or price set by providers or sellers. Understanding the concept of gross fee is important for consumers and businesses alike to accurately calculate and plan for the total cost of a service or product.
|
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
Meaning of gross fee?
Question Description
Meaning of gross fee? for Class 12 2025 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Meaning of gross fee? covers all topics & solutions for Class 12 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Meaning of gross fee?.
Meaning of gross fee? for Class 12 2025 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Meaning of gross fee? covers all topics & solutions for Class 12 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Meaning of gross fee?.
Solutions for Meaning of gross fee? in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of Meaning of gross fee? defined & explained in the simplest way possible. Besides giving the explanation of
Meaning of gross fee?, a detailed solution for Meaning of gross fee? has been provided alongside types of Meaning of gross fee? theory, EduRev gives you an
ample number of questions to practice Meaning of gross fee? tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup