________ are subtracted from sales to calculate gross margin.
A)Fixed manufacturing costs
B)Variable marketing costs
C)Variable manufacturing costs
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Gross margin is calculated by subtracting the cost of goods sold (COGS) from sales revenue. COGS includes both fixed manufacturing costs (such as factory rent and salaries) and variable manufacturing costs (such as raw materials and direct labor), making both A and C correct.

________ Are Subtracted from Sales to Calculate Gross Margin