Which of the Following Is Subtracted from Gross Profit to Arrive

question 10

Multiple Choice

Which of the following is subtracted from Gross profit to arrive at Net profit?

• A)Cost of goods available for sale
• B)Operating expenses
• C)Cost of sales
• D)Sales discounts and Sales returns and allowances

---

Definitions:

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Allocation

The process of distributing resources or costs among various accounts or departments based on a specific criteria.

Departments

Distinct areas within an organization, each specializing in specific functions or tasks.

Departmental Information

Departmental information involves data or records specific to a particular department within an organization, often used for internal planning, decision-making, and performance evaluation.