Gross operating surplus

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Gross operating surplus (GOS) is the surplus due to owners of incorporated businesses. Often called profits, although only a subset of total costs are subtracted from gross output to calculate the GOS. It is used to calculate the GDP using the income method.

Essentially it is sales less the cost of intermediate goods and services (to give gross value added), and less compensation of employees. It is gross because it makes no allowance for depreciation of capital.

A similar concept for unincorporated businesses and self-employed individuals is gross mixed income, since in such cases it is difficult to distinguish between wages and profits.