Gross Profit Is

question 70

Multiple Choice

Gross profit is

• A)a measure of the overall net income of a company.
• B)is expressed as a percentage of gross sales.
• C)also called gross margin.
• D)the same as gross profit margin.

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Definitions:

Step-Variable Cost

Costs that are fixed over a small range of activity but can change with significant changes in the volume of activity.

Sunk Cost

Expenses already incurred and which cannot be recovered, and should not be considered when making future business decisions.

Direct Manufacturing Cost

The sum of all costs directly tied to the production process, including direct labor and raw materials.

Manufacturing Overhead

Costs incurred in the production process that are not directly associated with individual units, including indirect materials, labor, and utilities, vital for operational continuity.