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.

Explain the process and importance of management by objectives in goal-setting and performance evaluation.

Comprehend the role of social learning in organizational behavior and its impact on learning and adaptation.

Understand the importance of designing and administering organizational reward systems.

Understand the concept of power, including its sources and effects within organizational contexts.

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Definitions:

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activities.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Unit Variable Cost

The cost associated with producing one additional unit of a product, which includes labor, materials, and other variable expenses.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.