Q309
Gross margin is added into cost of sold goods is to calculate the
A.
revenues
AnswerB.
operating leverage
C.
contribution margin
D.
operating margin
Answer: Option A
Solution
Answer: Option A
Solution:
Gross margin is added into cost of sold goods is to calculate the revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income. Sales Revenue formula. Revenue is also known as sales on the income statement.