Asked by Kennedy McCarthy on May 28, 2024
Verified
After gross profit is calculated operating expenses are deducted to determine
A) gross margin.
B) net income.
C) gross profit on sales.
D) net margin.
Gross Profit
The difference between sales revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest.
Operating Expenses
Costs incurred in the normal operations of a business, such as rent, utilities, and payroll.
Net Income
The conclusive financial gain of a company after expenses and taxes have been removed from the initial total revenue.
- Acquire an understanding of the principle and approach used to compute net income.
Verified Answer
BK
breanna kellyMay 29, 2024
Final Answer :
B
Explanation :
After deducting operating expenses from gross profit, the result is net income. Gross margin is the percentage of sales that is gross profit, gross profit on sales is the amount of gross profit earned for a specific period of time, and net margin is the percentage of sales that is net income.
Learning Objectives
- Acquire an understanding of the principle and approach used to compute net income.