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

Question

Quizplus · Accepted Answer

Revenue minus cost of goods sold is a calculation that results in the firm's gross margin. This is a measure of profitability that represents the amount of money that the company has left over after covering the direct costs associated with producing its products or services. Gross margin is calculated by subtracting the cost of goods sold (COGS) from total revenue. Therefore, option A is the correct choice. Option B (net income) is a more comprehensive measure of profitability that takes into account all of a company's expenses, not just the COGS. Option C (fundamental accounting equation) is a formula used to keep track of a company's assets, liabilities, and equity. Finally, option D (retained earnings) is the portion of the company's profits that are kept by the company rather than paid out as dividends.

The Calculation Revenue Minus Cost of Goods Sold Will Give