Accounting for IGCSE & O level - Final Statements (Section 10 - No. 41)
What is the role of the 'Cost of Sales' in calculating the gross profit?
It is added to the revenue.
It is subtracted from the revenue.
It is multiplied by the revenue.
It has no direct relation to revenue.
Paliwanag
Cost of Sales is subtracted from revenue to arrive at gross profit.