Gross profit is calculated by
A)subtracting cost of goods sold from sales.
B)adding sales to operating expenses.
C)subtracting operating expenses from sales.
D)adding profit to sales.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold (COGS) from sales. This calculation gives an indication of the profitability of a company's core business activities before taking into account other expenses such as operating expenses.

Gross Profit Is Calculated by