The term "gross margin" for a manufacturing company refers to the excess of sales over which of the following?
A) Cost of goods sold, excluding fixed manufacturing overhead.
B) All variable costs, including variable selling and administrative expenses.
C) Cost of goods sold, including fixed manufacturing overhead.
D) Variable costs, excluding variable selling and administrative expenses.

Question

Quizplus · Accepted Answer

Gross margin for a manufacturing company refers to the excess of sales over the cost of goods sold, which includes both variable costs and fixed manufacturing overhead.

The Term "Gross Margin" for a Manufacturing Company Refers to the Excess