Gross Profit Is Calculated by

question 5

Multiple Choice

Gross profit is calculated by

• A) subtracting total expenses from total revenues.
• B) subtracting cost of goods sold from net sales.
• C) subtracting the ending inventory from cost of goods sold.
• D) adding cost of goods sold to net sales.

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Definitions:

Standard Operating Procedures

Established or prescribed methods to be followed routinely for the performance of designated operations or in designated situations.

Employee Manuals

Documents that outline a company's policies, procedures, and expectations for its employees.

Zero-based Budget

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," rather than just adjusting previous budgets.

Project Schedule

A timeline that outlines the planned start and finish dates of various tasks or activities within a project.