What is the formula to calculate gross margin?
A)sales revenue − selling and administrative expenses
B)sales revenue − cost of goods sold
C)cost of goods manufactured + beginning finished goods inventory − ending finished goods inventory
D)total product costs + beginning work in process − ending work in process

Question

Quizplus · Accepted Answer

Gross margin is calculated using the formula: Sales revenue - Cost of goods sold. This formula takes into account the revenue generated from sales, while also factoring in the direct cost of producing those goods. It is a measure of a company's profitability and efficiency in managing its costs.

What Is the Formula to Calculate Gross Margin