Gross profit is equal to:A. sales less cost of merchandise sold.B. sales plus cost of merchandise sold.C. sales less selling expenses.D. sales plus selling expenses.

Correct Answer: A. sales less cost of merchandise sold. Explanation:Gross profit is the profit a…

Answered: Gross profit is equal to: A. sales less…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3DQ: How do you calculate the markup on cost of goods sold? Is the markup pure profit? Explain.

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Similar questions

How do you calculate the markup on cost of goods sold? Is the markup pure profit? Explain.
Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net sales less operating expenses. B.Sales less sales discount. C.less sales discounts. D.Net sales less selling expenses
Gross profit is the gross sales price charged for the goods sold A.True B.False
The difference between net sales and cost of goods sold is called (a) gross profit.(b) net purchases.(c) goods available for sale.(d) the bottom line.
Gross profit will result if: O Sales revenues are greater than operating expenses. Operating expenses are greater than cost of goods sold. Sales revenues are greater than cost of goods sold. O Operating expenses are less than net income.
Gross profit is calculated as the difference between net sales revenue and ________. A. cost of merchandise inventory B. purchase expense C. cost of goods sold D. operating expenses
The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price and how do you convert the gross profit % based upon cost to gross profit % based upon selling price?
Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is computed as A. Gross sales times cost ratio B. Net sales divided by sales ratio C. Net sales times cost ratio D. Gross sales divided by sales ratio
The difference between sales and cost of goods sold for a retail business is: a.net sales. b.gross sales. c.gross profit. d.sales.
Net Sales Cost of Goods Sold is equal to: - a. Gross Expenses. b. Gross Profit. c. Operating Expenses. d. Net Income from Operations.
What is the term applied to the excess of revenue from sales over the Cost of Merchandise Sold? a. net income Ob. gross sales Oc. gross profit Od. income from operations
The gross margin estimation method estimates the cost of goods sold by multiplying the costs to sales ratio by purchases. O multiplying the sales revenue by the inventory turnover ratio. multiplying the cost of goods available by the gross margin percentage. O multiplying the sales revenue by cost-to-sales ratio.

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