_____ is the excess of sales over the cost of goods sold.
A)Gross margin
B)Contribution-margin ratio
C)Variable-cost ratio
D)The sales mix

Question

Quizplus · Accepted Answer

Gross margin is the excess of sales over the cost of goods sold. It represents the profit that a company makes on its products or services. Option B is incorrect as contribution-margin ratio is the ratio of a product's contribution margin to its sales revenue. Option C is incorrect as variable-cost ratio is the proportion of variable costs to sales revenue. Option D is incorrect as sales mix refers to the proportion of each product sold within a company's product line.

_____ Is the Excess of Sales Over the Cost of Goods