Profit will result if gross profit exceeds: Group of answer choices cost of sales. operating expenses. purchases. cost of goods sold plus operating expenses.
Question
Profit will result if gross profit exceeds: Group of answer choices
cost of sales.
operating expenses.
purchases.
cost of goods sold plus operating expenses.
Solution
Profit will result if gross profit exceeds:
Operating expenses.
Here's how you can determine this:
Step 1: Understand Gross Profit and Operating Expenses Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Operating expenses are the costs associated with running the business, such as rent, utilities, and salaries.
Step 2: Calculate Profit Profit is calculated by subtracting operating expenses from gross profit. If the gross profit is greater than the operating expenses, the result is a profit.
So, the correct answer is operating expenses.
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