When a firm subtracts its cost of sales from its net sales, the amount left over is called:
A) gross margin.
B) return on assets.
C) net profit.
D) expenses.
E) gross sales.

Question

Quizplus · Accepted Answer

The amount left over after subtracting the cost of sales from net sales is called the gross margin. This represents the amount of sales revenue that is left over to cover other expenses and ultimately generate profit.

When a Firm Subtracts Its Cost of Sales from Its