Gross profit is equal to:

a. sales minus cost of goods sold.

b. sales minus (selling and administrative expenses).

c. sales minus (cost of goods sold and selling and administrative expenses).

d. sales minus (cost of goods sold and depreciation expense).

e. None of the above

Question

Business

Mccullough

4 December, 02:13

Gross profit is equal to:

a. sales minus cost of goods sold.

b. sales minus (selling and administrative expenses).

c. sales minus (cost of goods sold and selling and administrative expenses).

d. sales minus (cost of goods sold and depreciation expense).

e. None of the above

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Answers (1)

Know the Answer?

Izaiah Pruitt · Answer 1

The correct answer is letter "A": sales minus cost of goods sold.

Explanation:

Gross Profit is one of several important measurements of a company's profitability. Specifically, it is derived from taking sales revenue and subtracting the costs of goods sold. The costs of goods sold include the expenditures of raw materials and labor involved in making the products.

Gross profit is equal to:a. sales minus cost of goods sold.b. sales minus (selling and administrative expenses).c. sales minus (cost of goods sold and selling and administrative expenses).d. sales minus (cost of goods sold and depreciation expense).e. None of the above

Gross profit is equal to:

a. sales minus cost of goods sold.

b. sales minus (selling and administrative expenses).

c. sales minus (cost of goods sold and selling and administrative expenses).

d. sales minus (cost of goods sold and depreciation expense).

e. None of the above