Gross profit is calculated as the difference between net sales revenue and ________.
A)purchases
B)cost of goods sold
C)cost of merchandise inventory
D)selling and administrative expenses

Question

Quizplus · Accepted Answer

Gross profit is calculated by deducting the cost of goods sold from net sales revenue. The cost of goods sold represents the direct cost of producing or acquiring the goods sold by a company. Hence, option B, cost of goods sold, is the correct choice for calculating gross profit.

Gross Profit Is Calculated as the Difference Between Net Sales