# ECONOMICS

## COST ACCOUNTING

### FINANCIAL TERMINOLOGY

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The difference between the sales value and the direct costs of producing an item.
 A Margin B Matching principle C Maturity D Merger
Explanation:

Detailed explanation-1: -Analysis: Cost of sales analyzes the direct and indirect costs related to a company’s sale of its goods and services, while COGS analyzes the direct costs associated with the production of a company’s goods.

Detailed explanation-2: -Profit margin is sales minus the cost of goods sold. Markup is the percentage amount by which the cost of a product is increased to arrive at the selling price.

Detailed explanation-3: -Margin Definition Margin (also known as gross margin) is sales minus the cost of goods sold. For example, if a product sells for \$100 and costs \$70 to manufacture, its margin is \$30.

Detailed explanation-4: -The direct cost margin is calculated by taking the difference between the revenue generated by the sale of goods or services and the sum of all direct costs associated with the production of those goods, divided by the total revenue.

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