Gross processing margin

In commodities industries, the gross processing margin (GPM) refers to the difference between the cost of a commodity and the combined sales income of the finished products that result from processing the commodity.

Various industries have formulas to express the relationship of raw material costs to sales income from finished products.

References

This article incorporates public domain material from the Congressional Research Service document: Jasper Womach. "Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition" (PDF).

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