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WAEC SSCE - Commerce - 1992 (Objective)

Question 1 Report

The difference between cost and selling prices gives?
Answer Details
The difference between the cost and selling price of goods or services is known as the gross profit or loss. This is the amount left over after the cost of producing or acquiring the goods or services has been subtracted from the revenue generated by selling them. Gross profit is calculated by subtracting the cost of goods sold from the total revenue, while gross loss occurs when the cost of goods sold exceeds the revenue generated. It is an important measure of the profitability of a business and is typically used in the preparation of the trading account in accounting.
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