All categories

3 years ago

The difference between revenue and cost of goods sold is called:

Business

1 answer:

Sphinxa [80]3 years ago

6 0

Answer:

gross profit

Explanation:

Revenue is the income gained through the sales of goods and services to customers. It is the money received from customers when they buy from a business.

Costs of goods sold are the expenses incurred in producing goods meant for sales. It is composed of the direct cost of the manufacturing process. Costs of goods sold include direct materials, direct labor costs, and direct overhead costs.

Gross profit is equal to sales minus direct costs. Revenue is the same as sales, and direct costs are similar to the costs of goods sold. Therefore, revenue minus costs of goods sold is equal to gross profit.

You might be interested in

As a high schooler, what difference does it make how I spend my money now?

Tatiana [17]

Answer:

It is important to start saving at an early age. You can set some financial goals for things that you want to buy in the future instead of spending it all at one time. You can save for bigger ticket items, like a car.

Explanation:

7 0

3 years ago

Dave brags to his dad that his $45,000 starting salary as a computer programmer is much higher than his dad's $28,000 starting s

ivanzaharov [21]

Answer:

Option C Incorrect; adjusting for price changes, his salary is less than his dad's salary

Explanation:

Adjustment to price changes = (Amount received n years ago divided by Price Index n years ago) * Price Index today

Adjustment To price changes = ($28,000 / 110.8) * 180.5 = $45613.7

The amount $28,000 is worth $45,613.7 in todays value which means that if we adjust for price changes, Dave is incorrect because his salary is worth less by an amount $613.7 from his father's salary.

6 0

3 years ago

Read 2 more answers

A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from th

sergejj [24]

Answer: The free enterprise system was certainly necessary for Mary Kay Ash to make an impact on the business world.

Explanation: This is because having no restrictions from the government, Mary Kay could set the price of her products, making them competitive in the market. By selling directly to end consumers, she skipped intermediaries, therefore cut costs and had a great impact on the business world. Another strategy she used is "try before buying", which became a plus for her products, having satisfied costumers become captive consumers, always coming back for more. The Free Enterprise System was absolutely helpful for Mary Kay Cosmetics to have pressence in the world for 56 years now.

6 0

3 years ago

Read 2 more answers

Nathan started the first outlet of dynamix gym in new york city in 1995. the business expanded over time, and he became the owne

abruzzese [7]

Nathan is considered to be a franchiser. A franchiser is being defined as someone who owns an overaching company or trademarks and products in which they give a right to the franchisee to be able to run the franchise’s location in which is agreed with a fee.

3 0

3 years ago

Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed

mina [271]

Answer:

Explanation:

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

accounting profit = revenue - explicit cost

Explicit cost includes the amount expended in running the business.

100,000 - (25,000 + 40,000 + 25,000) = 10,000

economic profit = 10,000 - 10,000 = 0

6 0

3 years ago