Gross Profit Is Calculated as ________

question 49

Multiple Choice

Gross profit is calculated as ________.

• A) total sales - cost of sales - selling, general, and administrative expenses - depreciation and amortization
• B) total sales - cost of sales - selling, general, and administrative expenses
• C) total sales - cost of sales
• D) none of the above

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Definitions:

Sales Forecasts

The process of estimating future sales. It helps businesses make informed decisions regarding inventory management, workforce needs, and financial planning.

Historical Trends

Analysis of past data to identify patterns or changes over time that may influence future outcomes or behaviors.

Economic Forecasts

Predictions about future economic conditions, including growth rates, inflation, and employment, based on current and historical data.

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.