In absorption costing,sales revenue less cost of goods sold is equal to ________.

Name: In absorption costing,sales revenue less cost of goods sold is equal to ________.
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Quizplus · Accepted Answer

In absorption costing, cost of goods sold includes all costs associated with producing the product, including direct materials, direct labor, and overhead. Therefore, subtracting cost of goods sold from sales revenue gives us gross margin, which is the amount of revenue left over after directly attributable costs have been deducted.

In Absorption Costing,sales Revenue Less Cost of Goods Sold Is