Question

What is gross profit?
A.
The money left over after the cost of making a product or providing a service
B.
The cost of labor to produce a product
C.
The difference between a product's price and the revenue of the company
D.
A negative net profit, so the company experiences a loss


Please select the best answer from the choices provided

A
B
C
D

Answer 1

A — Gross profit = revenue minus the cost of goods sold (the cost of making a product or providing a service).