Net Sales Equals ________

question 138

Multiple Choice

Net sales equals ________.

• A)sales minus cost of goods sold
• B)sales minus sales returns and allowances minus sales discounts
• C)sales divided by net income
• D)net income divided by sales

---

Definitions:

Demand Curve

A graph that illustrates the relationship between the price of a good or service and the quantity demanded by consumers at various prices, typically sloping downward from left to right.

Cost Functions

Mathematical relationships that express how a firm’s costs depend on the quantity of output it produces.

Economic Profits

The surplus or profits generated by a firm after accounting for both explicit and implicit costs.

Fixed Cost

Expenses that do not change with the level of output produced, such as rent or salaries.