Target takes its net sales and subtracts the cost of goods sold during the previous period.The result is Target's
A) gross sales.
B) net income.
C) gross profit.
D) net margin.
E) net purchases.

Question

Quizplus · Accepted Answer

The result of subtracting the cost of goods sold from net sales is the gross profit. This is the profit before operating expenses are deducted, such as salaries, rent, and advertising.

Target Takes Its Net Sales and Subtracts the Cost of Goods