Asked by judas sanchez on Jun 25, 2024
Verified
Net Sales - Cost of Goods Sold is equal to:
A) Net Income from Operations.
B) Operating Expenses.
C) Gross Profit.
D) Selling Expenses.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold in a company, including materials and labor.
Net Sales
The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.
Gross Profit
The difference between net sales and the cost of goods sold, indicating the profit made before deducting expenses like salaries and rent.
- Understand the concept of Gross Profit and its calculation.
Verified Answer
KP
krishma patelJun 29, 2024
Final Answer :
C
Explanation :
Net Sales minus Cost of Goods Sold equals Gross Profit. This calculation shows the profit a company makes after deducting the costs associated with making and selling its products.
Learning Objectives
- Understand the concept of Gross Profit and its calculation.