Accounting for IGCSE & O level - Final Statements (Section 9 - No. 7)
In a departmental income statement, what does the gross profit represent?
Total revenue minus total expenses.
Sales revenue minus the cost of goods sold.
Operating expenses minus the cost of goods sold.
Sales revenue plus all operating expenses.
Paliwanag
Gross profit is a departmental view of profit before deducting further expenses.