Question

Which of these terms applies to the excess of sales over cost of goods sold?

a. gross profit
b. operations
c. net income
d. gross sales

Answer 1

Gross profit is the term that applies to the excess of sales over cost of goods sold. It is calculated by subtracting the cost of goods sold from the total sales revenue.

Step-by-step explanation:

The term that applies to the excess of sales over cost of goods sold is gross profit.

Gross profit is calculated by subtracting the cost of goods sold from the total sales revenue. It represents the profit made from selling goods before deducting other expenses such as operating expenses or taxes.

For example, if a company has $100,000 in sales and $60,000 in cost of goods sold, the gross profit would be $40,000 ($100,000 - $60,000).