The excess of cost of goods sold over net sales is
Question 1 Report
The excess of cost of goods sold over net sales is
Answer Details
When the cost of goods sold (COGS) is greater than the net sales revenue, this results in a negative amount. This negative amount is known as a "gross loss".
The gross profit, on the other hand, is the amount that remains after deducting the COGS from the net sales revenue. This represents the amount of money a company has made from its sales before taking into account any other expenses such as operating costs, taxes, and interest expenses.
To sum up, the excess of COGS over net sales is a "gross loss" and not a "net loss." The "net loss" or "net profit" is calculated after taking into account all expenses and revenue, not just the cost of goods sold and net sales.
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