What is a firm's gross profit?
A)the difference between the sales and other income generated by the firm,and all costs,taxes,and expenses incurred by the firm in a given period
B)the difference between sales revenues and the costs associated with those sales.
C)the difference between sales revenues and cash expenditures associated with those sales.
D)all of the above

Question

Quizplus · Accepted Answer

Gross profit is the difference between sales revenues and the costs associated with those sales. It does not include all costs, taxes, and expenses incurred by the firm, nor does it consider cash expenditures.

What Is a Firm's Gross Profit