Question

Does difference of purchase and sales is equal to gross profit

Answer 1

Some use the term gross margin to mean the same as gross profit, which is: net sales minus the cost of goods sold. ... The cost of goods sold will consist of both fixed and variable product costs. However, selling, general and administrative expenses (SG&A) are not part of the cost of goods sold.

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Answer 2

Answer:

Hey mate answer of your question is given below by me.

Explanation:

A company's sales revenue (also referred to as "net sales") is the income that it receives from the sale of goods or services. ... On the other hand, gross profit is the income that a company makes from its sales after the cost of the goods and operating expenses have been subtracted

I hope it can help you.