Multiple choice

Gross profit can also be called as

  1. sales over cost of sales

  2. sales over cost of purchase

  3. purchase over cost of purchase

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gross profit is = Sales - Cost of sales. (Sales - Cost of Purchase + Direct Expenses). Suppose the sales is Rs. 2,00,000 and cost of sales is Rs. 1,50,000 the gross profit is Rs. 50,000.

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