Gross profit includes a portion of your employees’ time and your time. But the important thing is this: **you will generally pay your employees for their time regardless of whether you have a bad sales day or good one.** You will likely pay them the same if they fix a car transmission in four hours or five. So to simplify things, **we categorize any employee that you have, full- or part-time, as a cost of the business operations, not as a cost of the goods sold**. --- **Tags** — [[quotes]], [[accounting]], [[interpersonal-skills]] **Source** — [[202303291359 - B - Profit First]]