Question

What is a​ firm's gross​ profit? A. the difference between sales revenues and cash expenditures associated with those sales B. the difference between sales revenues and the costs C. the difference between the sales and other income generated by the​ firm, and all​ costs, taxes, and expenses incurred by a firm in a given period D. all of the above

Answer 1

Answer:

B. The difference between sales revenues and the costs associated with those sales

Explanation:

The amount of profit made by the company after deducting the total costs which have been incurred in the making and the selling of the product is said to be gross profit. The gross profit is calculated by subtracting the amount of revenue and the cost of the goods sold. Fixed cost is not included in the gross profit. It includes only variable costs.