The difference between sales and cost of goods sold is called:

Question

Quizplus · Accepted Answer

The difference between sales and cost of goods sold is the gross profit. Gross profit represents the amount of money left over after the cost of goods sold has been deducted from sales revenue. It does not take into account general and administrative expenses or taxes, so it is not as comprehensive as net income. Contribution margin is the amount of money left over after variable costs have been subtracted from sales revenue, and finished goods inventory is a category of inventory that represents completed products that have not yet been sold.

The Difference Between Sales and Cost of Goods Sold Is