Gross profit for a merchandising concern is net sales minus
A) operating expenses.
B) cost of goods sold.
C) sales returns and allowances.
D) cost of goods available for sale.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold (COGS) from net sales. COGS represents the direct costs attributable to the production of the goods sold by a company. This does not include operating expenses, sales returns and allowances, or the cost of goods available for sale, which includes inventory that has not necessarily been sold yet.

Gross Profit for a Merchandising Concern Is Net Sales Minus