Gross margin equals

Question

Gross margin equals

Quizplus · Accepted Answer

Gross margin is calculated by subtracting the cost of goods sold from the sales revenue. Therefore, option C (sales revenue - cost of goods sold) is the correct answer. Option A includes selling and administrative expenses, which are not a part of the calculation of gross margin. Option B includes only the manufacturing costs and does not take into account the selling and administrative expenses. Option D includes the cost of goods manufactured, which is a part of the calculation of cost of goods sold and hence, not relevant to the calculation of gross margin.

Gross Margin Equals