_____ is the difference between the price of an item and the cost of making the item on a perproduct basis, and it is usually expressed as a percent.
A) Gross margin
B) Net income
C) Profit margin
D) Variable income

Question

_____ is the difference between the price of an item and the cost of making the item on a per­product basis, and it is usually expressed as a percent.
A) Gross margin
B) Net income
C) Profit margin
D) Variable income

Quizplus · Accepted Answer

Profit margin is the difference between the selling price of a product and the total cost of producing it or acquiring it for resale, expressed as a percentage of revenue. It is the percentage of sales that exceed the cost of goods sold and other expenses, and represent the company's profit on each sale. Gross margin is the difference between the selling price and the cost of goods sold on a per-product basis, while net income is the total profit after all expenses are deducted from revenue. Variable income is a term that is not commonly used in finance or accounting.

_____ Is the Difference Between the Price of an Item