The Gross Profit Margin Is Calculated by Dividing Gross Profit

question 53

Multiple Choice

The gross profit margin is calculated by dividing gross profit by

• A)sales.
• B)cost of goods sold.
• C)net sales.
• D)operating expenses.

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Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been expensed since the asset was acquired and put into use.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and put into use.

Disposed

Refers to the act of selling, throwing away, or giving away property, or the dealing with something that is no longer useful or required.

Gain

Refers to the increase in wealth or resources, typically measured in financial terms and often realized through investment or sale of assets.