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 the profit made after deducting the cost of goods sold from total sales revenue. Therefore, the calculation of gross profit only considers cost of sales, and does not include selling, general and administrative expenses or depreciation and amortization. Option C represents this calculation of gross profit by subtracting the cost of sales from total sales.

Gross Profit Is Calculated as