Gross profit is the extra amount the company receives from the customer for merchandise sold over what the company paid to the vendor.

Question

Quizplus · Accepted Answer

Gross profit is the difference between the revenue received from customer sales and the cost of goods sold, which includes the cost of the merchandise purchased from vendors. Therefore, it is the extra amount the company receives from the customer for merchandise sold over what the company paid to the vendor.

Gross Profit Is the Extra Amount the Company Receives from the Customer