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Management · Q286

Management Accounting

Graduate and Post Graduate · Management · question 286

Q286

In cost accounting, financial way of charging price for product above cost, of acquiring or producing goods is known as

A.
sales margin
B.
cost margin
C.
Gross margin
Answer
D.
income margin

Answer: Option C

Solution

Answer: Option C
Solution:
In cost accounting, financial way of charging price for product above cost, of acquiring or producing goods is known as Gross margin. Gross margin is a company's net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides.