'Gross Profit' Is Calculated as

question 52

Multiple Choice

'Gross profit' is calculated as

• A)Total sales - Cost of sales.
• B)Total sales - Cost of sales - Selling, general, and administrative expenses - Depreciation and amortisation.
• C)Total sales - Cost of sales - Selling, general, and administrative expenses.
• D)none of the above

---

Definitions:

Planning Budget

A financial plan that estimates revenue and expenses over a specific period in the future, guiding managerial decisions and actions.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Formula

A mathematical equation or rule expressed in symbols, often used in scientific, mathematical, or financial calculations.

Variable Overhead Efficiency Variance

The difference between actual variable overhead and the standard cost, reflecting efficiency in using resources that vary with production volume.