Gross Profit Is the Difference Between

question 14

Multiple Choice

Gross profit is the difference between:

• A) sales revenue and operating expenses.
• B) sales revenue and cost of goods sold.
• C) operating profit before tax and income tax expense.
• D) sales and sales returns.

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Definitions:

Yield Management

A pricing strategy used in industries with fixed capacities, such as hotels and airlines, to maximize revenue through the manipulation of prices based on demand.

Variable Costs

Costs that vary directly with the level of business activity.

Fixed Costs

Costs that do not change in total amount with changes in the volume of production, such as rent, salaries, and insurance expenses.

Complex Models

Analytical or simulation models that incorporate a multitude of variables and relationships to represent or predict intricate systems or phenomena.