What is gross margin?

Question

Quizplus · Accepted Answer

Gross margin is the profit that a company makes from selling goods or services after deducting the cost of producing or acquiring them. This is calculated as the difference between the revenue generated from sales and the cost of goods sold. Therefore, option C, sales minus cost of goods sold, is the correct choice. Options A and B are incorrect because they subtract operating expenses or other expenses, which do not reflect the cost of goods sold. Option D is also incorrect because it adds other income, which is not a part of the calculation of gross margin.

What Is Gross Margin