BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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operating profits minus depreciation
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operating profits minus cost of goods sold
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sales revenue minus operating expenses
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sales revenue minus cost of goods sold
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Detailed explanation-1: -Gross profit is the difference between a company’s total revenue and its total cost of goods sold, which is calculated by subtracting the cost of goods sold from the total revenue. It is also referred to as gross margin or gross income.
Detailed explanation-2: -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-3: -Sales revenue minus cost of goods sold is a business’s gross profit. Cost of goods sold is considered an expense in accounting and it can be found on a financial report called an income statement.
Detailed explanation-4: -Gross profit is revenue minus the cost of goods sold (COGS), which are the direct costs attributable to the production of the goods sold in a company.