________ are subtracted from sales to calculate gross margin.
A) Variable manufacturing costs
B) Fixed administrative costs
C) Variable administrative costs
D) Fixed selling costs

Question

Quizplus · Accepted Answer

Variable manufacturing costs are subtracted from sales to calculate gross margin. Gross margin represents the amount of money left over after subtracting the costs associated with producing the product from the revenue generated by the sale of that product. This calculation helps businesses understand how much they are making on each unit sold and can be used to make pricing and production decisions. Fixed administrative costs, variable administrative costs, and fixed selling costs are not used in the calculation of gross margin.

________ Are Subtracted from Sales to Calculate Gross Margin