Questions: Revenue minus cost of goods sold is called ? - net income - gross margin - gross profit - gain on inventory sales

The correct answers are:

• Gross margin
• Gross profit

Explanation for each option:

1. Net income: This is incorrect. Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue. It is not the same as revenue minus the cost of goods sold.

2. Gross margin: This is correct. Gross margin is often used interchangeably with gross profit, and it represents the difference between revenue and the cost of goods sold (COGS). It is a measure of a company's efficiency in producing its goods.

3. Gross profit: This is correct. Gross profit is the amount remaining when the cost of goods sold is subtracted from revenue. It indicates how well a company is managing its production costs relative to its sales.

4. Gain on inventory sales: This is incorrect. Gain on inventory sales typically refers to the profit made from selling inventory at a price higher than its book value, which is not the same as the general calculation of revenue minus COGS.