Gross margin equals
A) variable costs plus fixed costs.
B) sales less variable costs.
C) sales less cost of goods sold.
D) sales less cost of goods sold and selling and administrative costs.

Question

Quizplus · Accepted Answer

Gross margin is calculated as sales revenue minus the cost of goods sold (COGS). It represents the portion of sales revenue that exceeds the direct costs associated with producing the goods sold.

Gross Margin Equals