Gross Margin Is Equal to

question 139

Multiple Choice

Gross margin is equal to

• A) Sales Revenue divided by the balance in Merchandise Inventory at the end of the period.
• B) The balance in Merchandise Inventory at the beginning of the period plus the amount of inventory purchased during the year.
• C) Sales Revenue minus Cost of Goods Sold.
• D) Sales Revenue minus Cost of Goods Available for Sale.

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Definitions:

Inflation

How rapidly the across-the-board prices of goods and services increase, impairing fiscal buying ability.

Unemployment

Unemployment occurs when individuals who are capable of working and are looking for a job are unable to find employment. It is a key economic indicator.

Money Neutral

The principle that changes in the money supply only affect nominal variables and not real variables like output in the long run.

Favorable Supply Shock

An unexpected event that increases the supply of a product or service, leading to lower prices and benefiting consumers.