Gross Profit is defined as:

Gross profit is defined as revenue minus the cost of goods sold (COGS). This metric measures how efficiently a company produces and sells its products, focusing specifically on the direct costs associated with the production of those goods. Gross profit provides insight into a company’s production efficiency and pricing strategy, as it indicates the amount left over from sales after accounting for the direct costs of producing the goods sold.

Understanding gross profit is crucial for assessing a company's financial health because it lays the foundation for further analysis of profitability by examining operational expenses, taxes, and net income, which come into play in subsequent calculations. Thus, option B accurately captures this definition by identifying the key relationship between sales revenue and the costs directly linked to producing the goods sold.