Gross profit is the difference between:
A) sales revenue and costs of goods sold.
B) sales revenue and fixed costs of the salesperson.
C) sales revenue and costs of goods sold including taxes.
D) net profit and transportation cost.
E) total sales and manufacturing cost.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold (COGS) from the sales revenue. This figure does not account for other expenses such as taxes, fixed costs, or transportation costs.

Gross Profit Is the Difference Between