Gross profit is defined as:
A) what is left after deducting the cost of goods sold.
B) what is left after deducting the operating expenses of the business.
C) the amount of money the owner takes out of the firm annually.
D) the profit earned by a company when its product is in the maturity stage of the product life cycle.

Question

Quizplus · Accepted Answer

Gross profit is the profit earned by a business after deducting the cost of goods sold (COGS) from its revenue. It is a measure of a company's profitability that does not include overhead expenses, such as rent, utilities, and salaries. Therefore, the correct choice is A.

Gross Profit Is Defined As