Gross profit is defined as the

Select one:

a. Net income before taxes and depreciation are deducted.

b. The difference between sales and cost of goods sold.

c. The difference between revenues and expenses.

d. Net income before interest is deducted.

Expert Solution

Option b is the correct answer because Gross profit is the profit that is earned from the sales and cost of goods sold is the cost at which the goods are purchased and then sold at a higher price in order to earn profit. Hence,

Sales - Cost of goods sold = Gross Profit

b. The difference between sales and cost of goods sold.

Ribika answered 2 years ago

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