Sales is equal to the cost of goods sold less the gross profit.

Cost Of Goods Sold

Expenses directly incurred from the manufacturing of a company’s goods for sale, such as materials and labor.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Familiarize oneself with the principles and relevance of the perpetual inventory system, with a focus on the procedure for returns and the evaluation of the cost of goods sold.

Verified Answer

Jesse LauerAug 01, 2024

Final Answer :

False

Explanation :

Sales is equal to the cost of goods sold plus the gross profit, not less.

Learning Objectives

Familiarize oneself with the principles and relevance of the perpetual inventory system, with a focus on the procedure for returns and the evaluation of the cost of goods sold.