Gross Profit Is Calculated as ________

question 49

Multiple Choice

Gross profit is calculated as ________.

• A) total sales - cost of sales - selling, general, and administrative expenses - depreciation and amortization
• B) total sales - cost of sales - selling, general, and administrative expenses
• C) total sales - cost of sales
• D) none of the above

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Definitions:

Volume Variance

A financial metric that measures the difference between the expected sales volume and the actual sales volume.

Spending Variance

The difference between the budgeted or standard cost of something and its actual cost, which can indicate areas of inefficiency or savings.