Q712
Gross margin is subtracted from sales value of all production to yield
A.
labour cost incurred on product
B.
production cost incurred on product
AnswerC.
marketing cost incurred on product
D.
all of above
Answer: Option B
Solution
Answer: Option B
Solution:
Gross margin is subtracted from sales value of all production to yield production cost incurred on product. The gross profit margin is calculated by taking total revenue minus the cost of goods sold (COGS) and dividing the difference by total revenue.