All of the following are used to compute gross profit except:

Name: All of the following are used to compute gross profit except:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Rent expense is not used to compute gross profit, as gross profit is calculated by subtracting the cost of goods sold (which includes the cost of purchases) from the revenue generated from sales. Purchase returns and allowances, as well as purchases themselves, are both used in calculating the cost of goods sold.

All of the Following Are Used to Compute Gross Profit