Gross margin is the difference between net sales and cost of goods sold or the amount available to cover operating expenses and produce a profit.

Question

Quizplus · Accepted Answer

This statement is true. Gross margin is a financial metric that represents the amount of revenue from sales that exceeds the cost of producing or purchasing and selling the goods or services. It is calculated by subtracting the cost of goods sold from net sales. The gross margin is then available to cover operating expenses and produce a profit.

Gross Margin Is the Difference Between Net Sales and Cost