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Deducting cost of goods sold from net sales gives:
AGross mapping
BGross margin
CGross method
DGross matching
Answer & Solution
Correct answer: B. Gross margin
1. Net sales come first on the statement.
2. The direct cost of the goods is taken off next.
3. The result is gross margin.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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