Which of the following is a characteristic of gross profit?

Gross profit is defined as the revenue from sales minus the cost of goods sold (COGS). It specifically focuses on the profitability of the direct production and sale of a company's goods or services, representing how efficiently a company is producing its offerings. This measure is significant because it allows businesses to assess the core profitability from their sales activities before any operating expenses, taxes, or interest are taken into account.

In contrast, the other options do not accurately describe gross profit. Including all expenses refers to operating income or net income, which considers additional costs beyond COGS. Describing gross profit as net income after taxes misconstrues the concept since net income considers comprehensive expenses and tax implications rather than just direct costs. Finally, asserting that gross profit reflects total company income would be incorrect, as it does not encompass all revenue streams or costs associated with operating the business.

By focusing on direct sales profitability, gross profit provides valuable insights into operational efficiency and pricing strategies, underscoring its correct identification in this question.