Costs are deducted from revenue in several stages to show how net income is determined. The first step in this process is to deduct:
A) costs of damaged goods.
B) costs of purchased goods
C) costs of goods mortgaged.
D) costs of goods sold.

Question

Quizplus · Accepted Answer

The first step in determining net income is to deduct the cost of goods sold (COGS) from revenue, which shows the gross profit.

Costs Are Deducted from Revenue in Several Stages to Show