Which of the following is true about gross profit (gross margin)?
A) It is net sales minus all expenses.
B) It is a separate account in the general ledger.
C) It is net sales minus cost of goods sold.
D) It is sales plus cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profit, also known as gross margin, is calculated as net sales minus cost of goods sold. It represents the amount of revenue remaining after deducting the direct costs associated with producing the goods or services being sold.

Which of the Following Is True About Gross Profit (Gross