Gross profit is calculated as:
A)Total sales - cost of sales - selling,general and administrative expenses - depreciation and amortization.
B)Total sales - cost of sales - selling,general and administrative expenses.
C)Total sales - cost of sales.
D)None of the above

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of sales from the total sales. It represents the profit before deducting any additional expenses like selling, general and administrative expenses and depreciation/amortization. Therefore, the correct option is C) Total sales - cost of sales.

Gross Profit Is Calculated As