Gross profit is the difference between:
A) sales revenue and operating expenses.
B) sales revenue and cost of goods sold.
C) operating profit before tax and income tax expense.
D) sales and sales returns.

Question

Quizplus · Accepted Answer

Gross profit is defined as the revenue generated from selling goods or services minus the cost of goods sold (COGS), which includes the direct costs associated with producing or purchasing the goods or services that are sold. Operating expenses, operating profit before tax and income tax expense, and sales returns are not factored into the calculation of gross profit.

Gross Profit Is the Difference Between