The ability of a manufacturer to mark-up its product costs to selling price is reflected in its
A) gross margin (profit).
B) nonoperating expenses.
C) operating expenses.
D) inventory.

Question

Quizplus · Accepted Answer

Gross margin (profit) reflects the difference between the selling price and the cost of goods sold, indicating the manufacturer's ability to mark-up product costs.

The Ability of a Manufacturer to Mark-Up Its Product Costs