Gross Margin Is Defined as Gross Profit

question 18

Multiple Choice

Gross margin is defined as gross profit:

• A) minus total operating expenses.
• B) divided by net sales revenues.
• C) divided by cost of sales.
• D) minus net income.

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Definitions:

Coordinating Mechanism

The methods, practices, or systems used to align and direct the diverse activities and resources of an organization towards achieving its goals.

Informal Communication

Informal Communication is the exchange of information, ideas, or feelings without formal structure or protocols, often spontaneously among colleagues or within social groups.

Centralization

The concentration of decision-making authority at the top levels of an organization or system.

Division of Labor

The assignment of different tasks to different people or groups in an effort to improve efficiency and productivity.