Gross profit is the difference between ______.
2019
Gross profit is the difference between ______.
- A.
Sales revenue and closing stock
- B.
Sale revenue and cost of goods sold
- C.
Sales revenue and opening stock
- D.
Purchases and closing stock
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Correct answer: B
Definition: Gross profit is the difference between sales revenue and the cost of goods sold. सकल लाभ दो चीजों के बीच का अंतर होता है: बिक्री राजस्व और बेचे गए माल की लागत। Formula: Gross profit = Sales revenue − Cost of goods sold How cost of goods sold (COGS) is related: COGS is typically calculated as: Opening stock + Purchases + Direct expenses − Closing stock.
Closing stock and opening stock are components used to find COGS, but gross profit uses the total COGS, not just inventory figures alone.