Question

Gross Profit is equal to ___________________.

• A. Cost of Goods Sold-Sales
• B. Sales - Cost of Goods Sold
• C. Cost of Goods Sold + Operating Profit
• D. Sales-operating cost

Answer 1

The correct option is B Sales - Cost of Goods Sold

Gross profit = Sales - cost of goods sold.

Gross profit is the amount that have been charged in excess of the cost of the goods that are being sold. Hence, it is the difference between the sales and cost of goods sold.