Question

Acme Manufacturing Company’s controller was classifying costs for the most recent financial statement period. Which of the following should be excluded from the calculation of gross margin? Group of answer choices Factory worker wages. Materials used in assembling a product. Conveyer belt maintenance for production of all products. Marketing brochure for the company’s new product. None of them

Answer 1

Answer:

Marketing brochure for the company’s new product

Explanation:

As we know that

Gross profit is a difference between sales and the cost of goods sold

In mathematically,

Gross profit = Sales revenue - cost of goods sold

The cost of goods sold includes the cost related to the material, direct labor, manufacturing overhead, etc

Moreover, it consist of wages of factory workers, maintenance cost

Therefore the marketing brochure is not included in the gross profit as it used to display the company products to the customers