Final answer:
The term for the excess of sales over the cost of goods sold is 'gross profit,' a crucial financial metric that reflects the income a company retains after covering the direct costs of producing the goods it sells.
Step-by-step explanation:
The term applied to the excess of sales over the cost of goods sold is d. gross profit. Gross profit is a key financial metric for a company's financial health and is used to pay for operating expenses like salaries, advertising, and R&D. It is calculated by subtracting the cost of goods sold from the total revenue. Total revenue, as mentioned, is the income a firm generates from selling its products, calculated by the formula: Total Revenue = Price x Quantity.
Total revenue represents the full income from sales, while the cost of goods sold (COGS) includes the direct costs attributable to the production of the goods sold by a company. Thus, gross profit encapsulates the difference between these two important figures.