The difference between a company's sales revenue and the cost of goods sold is the company's ____.
A) cost of operation
B) gross profit
C) growth trend
D) total revenue

Question

Quizplus · Accepted Answer

The difference between sales revenue and cost of goods sold is known as gross profit, which represents the profit made by the company before deducting any other expenses. Therefore, option B is the correct answer. Option A is incorrect as cost of operation refers to all the expenses incurred while running the business. Option C is incorrect as growth trend doesn't relate to the difference between sales revenue and cost of goods sold. Option D is incorrect as total revenue is the total income earned by the company from sales, whereas we're looking for the difference between revenue and cost of goods sold.

The Difference Between a Company's Sales Revenue and the Cost