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Management · Q271

Management Accounting

Graduate and Post Graduate · Management · question 271

Q271

Gross margin is added to cost of sold goods to calculate

A.
revenues
Answer
B.
selling price
C.
unit price
D.
bundle price

Answer: Option A

Solution

Answer: Option A
Solution:
Gross margin is added to cost of sold goods to calculate 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.