What is a firm's gross profit?
A)the difference between the sales and other income generated by the firm,and all costs,taxes,and expenses incurred by the firm in a given period
B)the difference between sales revenues and the costs associated with those sales
C)the difference between sales revenues and cash expenditures associated with those sales
D)earnings before interest and taxes are deducted
E)earnings after interest is deducted but before taxes are deducted

Question

Quizplus · Accepted Answer

Gross profit is the difference between sales revenue and the costs associated with those sales. It does not include taxes, expenses or interest.

What Is a Firm's Gross Profit