Which of the following best describes gross profit?

Gross profit is defined as the profit a company makes after deducting the costs directly associated with producing the goods sold by that company. It is calculated by taking the sales revenue and subtracting the cost of goods sold (COGS), which includes all expenses directly tied to production, such as materials and labor involved in manufacturing a product.

This definition aligns perfectly with the chosen answer. Understanding gross profit is crucial for businesses as it indicates how efficiently they are producing and selling their products. It gives insight into the core profitability of a company’s operations before accounting for other operating expenses, taxes, and interest, which are considered in net profit calculations.

In contrast, the other options refer to other aspects of financial performance. For instance, sales revenue after all expenses encompasses net profit, which is a different measure that includes operating and non-operating expenses in addition to COGS. Similarly, "total profit after operating expenses" pertains to net profit as well, while "revenue gained from all sources" implies total revenue but does not account for any costs, making it distinct from gross profit. Thus, option C accurately captures the essence of what gross profit represents in financial terms.