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 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.
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
Net Sales Cost of Goods Sold is equal to: - a. Gross Expenses. b. Gross Profit. c. Operating Expenses. d. Net Income from Operations.
Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit by sales.The formula to calculate the gross profit ratio is as follows: Gross profit = Gross profit/sales Gross profit is calculated using the following formula: Gross profit= Sales-Cost of Goods Sold To choose: The correct term for excess of sales over the cost of goods sold.
Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit) when ( a ) costsare rising and ( b ) costs are falling.
8. The difference between total sales in dollars and total cost of goods sold is called: A. net operating income. B. net profit. C. the gross margin. D. the contribution margin.
The gross profit percentage is equal to: A. Net operating income/Sales B. Cost of goods sold/Sales C. Cost of goods sold/Net income D. (Net operating income + Operating expenses)/Sales E. (Net operating income - Operating expenses) /Sales
Total revenue minus total cost equals: a. quantity. b. change in profit. c. marginal cost. d. marginal revenue. e. profit.

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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.