Asked by anthony triguero on May 16, 2024
Verified
Gross profit is a measure of the overall profitability of a company.
Gross Profit
The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.
Overall Profitability
An assessment of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.
Company
A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.
- Comprehend the role and calculation of gross profit in assessing company profitability.
Verified Answer
AA
Andrea AyalaMay 22, 2024
Final Answer :
False
Explanation :
Gross profit measures the profitability of a company's core activities without considering overhead costs, not the overall profitability.
Learning Objectives
- Comprehend the role and calculation of gross profit in assessing company profitability.