Question
Gross Profit is calculated as follows:
Sales less variable manufacturing costs
Sales less cost of sales
Sales less variable cost of sales
Sales less cost of sales, variable cost and fixed selling and admin costs
Sales less variable manufacturing costs
Sales less cost of sales
Sales less variable cost of sales
Sales less cost of sales, variable cost and fixed selling and admin costs
Answers
GPT-4o mini
Gross Profit is typically calculated as:
**Sales less cost of sales.**
In this context, "cost of sales" generally refers to the direct costs associated with producing goods sold by a company, which mainly includes variable manufacturing costs. It does not include fixed costs or selling and administrative expenses. Therefore, the correct definition is "Sales less cost of sales."
The other options provided may refer to different metrics or types of profit but are not the standard calculation for gross profit.
**Sales less cost of sales.**
In this context, "cost of sales" generally refers to the direct costs associated with producing goods sold by a company, which mainly includes variable manufacturing costs. It does not include fixed costs or selling and administrative expenses. Therefore, the correct definition is "Sales less cost of sales."
The other options provided may refer to different metrics or types of profit but are not the standard calculation for gross profit.