Match the words with the term.
-How is gross profit determined?
A) by deducting the cost of sales from revenue
B) by deducting operating expenses from revenue
C) by deducting income tax expense from profit before taxes
D) by deducting distribution costs from operating profit

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold (COGS) or cost of sales from the total revenue. This measures how efficiently a company uses its labor and supplies in the production process.

Match the Words with the Term