ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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revenue
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net operating income
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gross profit
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net income
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Detailed explanation-1: -Gross profit will appear on a company’s income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). These figures can be found on a company’s income statement. Gross profit may also be referred to as sales profit or gross income.
Detailed explanation-2: -Gross profit is the profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services. You can calculate gross profit by deducting the cost of goods sold (COGS) from your total sales.
Detailed explanation-3: -Cost of goods sold (COGS) is the value that is deducted from the sales or revenue in order to gross profit. When gross profit is calculated on an income statement (multi-step), all the costs that are incurred in selling the organization’s services and products that are presented as COGS are subtracted.