Select the appropriate definition of each of the items listed below.
-The difference between sales revenue and cost of goods sold
A)Income Statement
B)Cost of goods manufactured
C)Work in process
D)Gross margin
E)Operating income

Question

Quizplus · Accepted Answer

The difference between sales revenue and cost of goods sold is referred to as gross margin.

Answer: A
 Income statement is a financial statement that reports a company's revenues and expenses and shows its net income or loss for a specific period.

Answer: B
 Cost of goods manufactured refers to the total cost of all products that a company produces during a specific period.

Answer: C
 Work in process refers to the inventory that is currently in the production process but is not yet completed.

Answer: E
 Operating income is the amount of revenue that a company generates from its core business operations, minus all expenses related to those operations.

Select the Appropriate Definition of Each of the Items Listed