The calculation revenue minus cost of goods sold will give the firm its:

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Revenue minus cost of goods sold gives the firm its gross margin, which represents the difference between revenue and the direct costs associated with producing the goods or services being sold. Gross margin is an important metric for evaluating a company's profitability and is often used to compare against industry standards, historical results, and competitors. Retained earnings and net income, on the other hand, are calculated by subtracting expenses (including indirect costs) from revenue, and represent the amount of profit that is reinvested into the company or paid out to shareholders, respectively. The fundamental accounting equation is Assets = Liabilities + Equity, which represents the relationship between a company's resources (assets) and its obligations and ownership (liabilities and equity) at a given point in time.

The Calculation Revenue Minus Cost of Goods Sold Will Give