Gross margin:
A) can be expressed as a percentage of net sales
B) is a performance measure
C) is also referred to as gross profit
D) is a measure of how much profit a retailer is making on the sale of merchandise
E) is described by all of these

Question

Quizplus · Accepted Answer

Gross margin is the difference between net sales and the cost of goods sold, expressed as a percentage of net sales. It is a performance measure that indicates how much profit a retailer is making on the sale of merchandise. It is also commonly referred to as gross profit. Therefore, all of the given options are correct descriptions of gross margin.

Gross Margin