Asked by Jalen Taper on Apr 28, 2024
Verified
In a traditional format income statement, the gross margin is sales minus cost of goods sold.
Gross Margin
The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activities.
Traditional Format
An accounting income statement format that categorizes costs by their function, such as cost of goods sold, operating expenses, and other expenses.
- Outline the distinctions between traditional and contribution format income statements.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
True
Explanation :
In a traditional income statement, the gross margin is calculated by subtracting the cost of goods sold from the total sales.
Learning Objectives
- Outline the distinctions between traditional and contribution format income statements.
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