For a retailing or manufacturing entity,gross profit is equal to sales less:

Name: For a retailing or manufacturing entity,gross profit is equal to sales less:
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Gross profit is the difference between the revenue (sales) earned and the direct cost incurred in producing or purchasing the goods sold, which is also known as the cost of sales. Therefore, gross profit is equal to sales less cost of sales. Expenses such as rent, salaries, and advertising are not included in the calculation of gross profit.

For a Retailing or Manufacturing Entity,gross Profit Is Equal to Sales