The gross margin for a manufacturing company is the excess of sales over:
A) cost of goods sold, excluding fixed manufacturing overhead.
B) all variable costs, including variable selling and administrative expenses.
C) cost of goods sold, including fixed manufacturing overhead.
D) variable costs, excluding variable selling and administrative expenses.

Question

Quizplus · Accepted Answer

Gross margin is calculated as sales revenue minus the cost of goods sold, which includes both variable and fixed manufacturing overhead.

The Gross Margin for a Manufacturing Company Is the Excess