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The difference between total sales revenue and total cost of goods sold is the: A. Trade margin B. Gross marketing contribution C. Net marketing contribution D. All of the above

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Answer:

A. Trade margin

Explanation:

The profit obtained from trading operations is known as gross profit or trade margin.This is calculated as sales less costs of goods sold.

The difference between total sales revenue and total cost of goods sold is the gross marketing contribution.

The following information is considered:

  • When the cost of goods sold is deducted from the sales revenue so the gross marketing contribution should come.
  • Neither it is trade margin, nor net marketing contribution.
  • In other words, the difference is called as gross margin.

Therefore we can conclude that the correct option is B.

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